9911796707
TMI Blog2017 (11) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... cture. I find that this is an inescapable consequence of the process of manufacture and needs to be pre-determined - matter on remand. Penalty u/s 11AC of CEA - Held that: - there is no material on record available of fraud, suppression, collusion, willful mis-statement or contravention of any provision with an intent to evade payment of duty. In the present case, the appellant had reversed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Officers conducted physical stock verification of finished goods at the factory premise of the appellant. The officers observed difference between the recorded balance of stock and the actual stock and hence, the excess stock was seized under the provisions of Section 110 of the Customs Act, 1962. A Show Cause Notice dated 19.06.2009 was issued proposing confiscation of goods and a demand of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire amount of credit of ₹ 2,08,508/- has been reversed. The Ld. Counsel further submits that it is a well settled principle of law that for imposition of penalty under Rule 15(2) of Cenvat Credit Rules, 2004, mens rea on the part of the assessee is necessary to be established. He further submits that many a times inputs supplied are received in short quantity compared to the quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision with an intent to evade payment of duty. In the present case, the appellant had reversed the amount demanded on the quantity found short and therefore, penalty under Section 11AC is not justified. The demand of duty is upheld and penalty is set aside. 6. The appeal filed by the appellant is thus partly allowed. (Pronounced in the open court on.24.07.2017..) - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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