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TMI Blog2009 (8) TMI 1070X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue. The respondents M/s. Sankala Industries manufactured and cleared PVC Compound and PVC Resin during the periods 2000-2001 to 2004-2005 (till November, 2004) to their sister unit on payment of excise duty applicable to clearance of such goods when sold to unrelated buyers. After due process of law, the original authority dropped the proposal to penalize the respondents under Section 11AC o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he value for payment of duty in terms of Rule 8 of the Central Excise (Valuation) Rules, 2000. It had wilfully suppressed the fact of stock transfer of goods to its sister unit with an intent to evade payment of duty. The respondent had short paid excise duty of Rs. 5,00,420/- (Rupees Five lakh four hundred and twenty only) and Education Cess of Rs. 2,521/- (Rupees Two thousand five hundred and tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from penalty and interest when departmental authorities detected liability of an assessee to pay excise duty and the concerned person paid the duty due after detection but before issue of show cause notice. Relying on the judgment of the Apex Court in the case of Zunzarrao Bhikaji Nagarkar v. Union of India - 1999 (112) E.L.T. 772 (S.C.), it is submitted that it was not the intention of the law to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. We find that as per the impugned order, the respondents had stock transferred the goods to their sister concern paying duty adopting price applicable to unrelated buyers as they were not aware of the requirement under Valuation Rules. We find that penalty is warranted only in a case of evasion of any amount of duty due by an assessee. In this case, the initial short payment had occurred on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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