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TMI Blog2008 (2) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent. [Order per : Jyoti Balasundaram, Vice-President]. The assessees herein were paying 8% of the price of rectified spirit manufactured by them in compliance with the requirement of Rule 57CC of the Central Excise Rules, 1944. Scrutiny of their records revealed that the price of rectified spirit cleared for captive consumption was less than the price of the same goods cleared for h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest and imposition of penalty was issued. 2. The Notice was adjudicated by the Commissioner of Central Excise, confirming the duty already paid together with interest at the appropriate rate and imposing penalty of Rs. 27,72,385/- in respect of the amount demanded on clearances post 28-9-1996 under the previsions of Section 11AC of the Central Excise Act, 1944 and Rs. 5000/- in respect of amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r captive consumption and home consumption. The lower rate fixation was not due to difference in strength or market condition or stock position of different grades, as contended by the assesses, but due to deliberate under-valuation as brought out by the resolution dated 2-8-1996 which reads as under : Due to introduction of Rule 57CC in Finance Budget 96-97, the Modvat credit is required to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1996. 5. This clearly brings out suppression on the part of the assessees with an intention to evade payment of duty by misdeclaring the price of rectified spirit. We therefore hold that the demand is not barred by limitation. Since the assessees clearly stated that they are not challenging the demand on merits, it is required to be sustained. Levy of interest and imposition of penalty is also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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