2010 (9) TMI 1039

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..... both sides. 2. The appeal filed by the present appellant is against the impugned order whereby the penalty imposed under Section 11AC of the Act was upheld by the Commissioner (Appeals). Brief facts of the case are that the appellants are engaged in the manufacture of various motor vehicle parts and availed credit of ₹ 27,641/-. On 31-8-2005 the Revenue pointed out that the documents on t .....

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..... an Spinning Weaving Mills - 2009 (238) E.L.T. 3 (S.C.) held that mandatory penalty under Section 11AC of the Act is not applicable in every case of non-payment or short-payment of duty. Conditions mentioned in Section 11AC should exist for penalty thereunder. As per the provisions of Section 11AC, where any duty of excise has not been levied or paid or has been short-levied or short-paid or erro .....

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..... as also situated in the same locality. In any case, the appellants are entitled for credit on the basis of the document in the other unit. In the circumstances, I find that an allegation of suppression, misdeclaration, etc., with intent to evade payment of duty is not in the show cause notice. The penalty imposed under Section 11AC of the Act is not sustainable hence set aside. The appeal is allow .....

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