2025 (3) TMI 263 - AT - Central Excise

Levy of Centrat Excise Duty - amount of performance incentive received from the buyers for the Financial Year 2010-11 - suppression of facts or not - invocation of extended period of limitation - penalty - HELD THAT - In this case it is found that the observation of the adjudicating authority while dropping the penalty against the appellant under Section 11AC of the Central Excise Act 1944 has attained finality - the extended period of limitation is not invokable in the facts and circumstances of the case. The extended period of limitation is not invokable. Consequently whole of the demand is set aside - appeal allowed.

Summary

The case involves an appeal against the confirmation of Central Excise duty on a performance incentive received by the appellant. The adjudicating authority dropped the penalty under Section 11AC of the Central Excise Act, 1944, due to the absence of fraud or willful misstatement by the appellant. The appellate tribunal found that the extended period of limitation is not applicable in this case, as the penalty provisions require positive acts to evade duty. Since the finding on penalty has attained finality, the demand is set aside, and the appeal is allowed.