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TMI Blog2011 (5) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... of the same by the assessees, and therefore the charge of evasion of differential duty on packing charges cannot be sustained. The assessees, therefore, cannot be held to be guilty of suppression with intention to evade payment of duty and hence the ingredients of Section 11AC which are necessarily to be established for penal action under Section 11AC of the Central Excise Act are not attracted against them, liability of the assessees to interest (which has been paid by them) upheld but penalty set aside, appeal partly allowed - E/464/2002 - 617/2011, - Dated:- 26-5-2011 - Ms. Jyoti Balasundaram, Dr. Chittaranjan Satapathy, JJ. S/Shri R. Raghavan and M. Kannan, Advocates, for the Appellant. Shri C. Rangaraju, SDR, for the Respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise, Madurai v. Jkon Engineering (P) Ltd. [2003 (151) E.L.T. 453 (Trr.-Chennai)]. The Revenue challenged the above order before the Hon ble Supreme Court which vide its order dated 8-11-2010 in Civil Appeal No. 9609/2010 remanded the case to the Tribunal for fresh decision in the light of its decision in Union of India v. Rajasthan Spinning Mills [2009 (238) E.L.T. 3 (S.C.)]. This is how the appeal comes up for hearing before us. 2. The appeal came up for hearing on 10-3-2011 and 12-5-2011 and was adjourned to today for the purpose of production of proof of payment of interest on the duty amount, which was required to be paid in the light of the Apex Court s decision in Commissioner of Central Excise, Pune v. SKF India Ltd. [2009 (239) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges and duty was paid thereupon. The duty was reimbursed by the Vehicle Factory to the assessees. In these circumstances, the assessees do not stand to gain if duty is not paid as duty has been reimbursed by the Vehicle Factory on payment of the same by the assessees, and therefore the charge of evasion of differential duty on packing charges cannot be sustained. The assessees, therefore, cannot be held to be guilty of suppression with intention to evade payment of duty and hence the ingredients of Section 11AC which are necessarily to be established for penal action under Section 11AC of the Central Excise Act are not attracted against them. 4. We, therefore, uphold the liability of the assessees to interest (which has been paid by them) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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