2007 (1) TMI 487

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..... ides. The appellant filed this appeal for setting aside the penalty imposed under Section 11A of Central Excise and Rule 26 of the Cenvat Credit Rules. 2. The appellants are engaged in the manufacture of cough drops and availing the benefit of small scale exemption notification. On a specific information, the Revenue officers visited the factory premises of the appellants and found that they wer .....

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..... ed the duty in pursuance to the direction of the Excise officers. The contention is that the provisions of Section 11B of Central Excise Act are not applicable when the duty was not paid on willful suppression. Therefore, the penalties were rightly imposed. At this stage, the contention of the appellant is that there is a discretion with the authorities to impose lesser amount of penalty under Sec .....

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..... and clearing the goods after availing the benefit of small scale benefit notification and in respect of the branded goods, the appellants were not paying and duty. Therefore, I find force in the arguments of the Revenue. As the appellants are liable to penalty under Section 11AC of the Central Excise Act and the Hon ble Gujarat High Court held that the assessing authority has authority to impose .....

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