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TMI Blog2018 (6) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... nt has not suppressed any facts from the Department and they have filed all the documents including the balance sheet, Profit & Loss Account and other documents. Since they have paid the duty and there was no intention to evade and demand is also within the normal period of limitation and the provision to Section 11AC(1) has not been invoked in the instant case - the ingredients of Section 11AC of the CEA are not present to impose penalty equal to duty. Penalty not warranted - appeal allowed - decided in favor of appellant. - E/842/2007-DB - 20749/2018 - Dated:- 23-5-2018 - MR. S.S GARG, JUDICIAL MEMBER And MR. P. ANJANI KUMAR, TECHNICAL MEMBER Shri A.S. MONNAPPA, Advocate For the Appellant Shri N. Jagadish, Asst. Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the demand for duty of ₹ 27,60,188/- under Section 11AC(1) of the CEA. The duty of ₹ 27,60,188/- paid by the appellant was appropriated against the said demand. But the Additional Commissioner also imposed penalty of ₹ 27,60,188/- under Section 11AC and a penalty of ₹ 10,000/- under Rule 25 of Central Excise Rules. Aggrieved by the said order, appellant filed appeal before the Commissioner(Appeals) who upheld the penalty of ₹ 27,60,188/- imposed under Section 11AC but set aside the penalty of ₹ 10,000/- imposed under Rule 25 of the Central Excise Rules, 2002. Aggrieved by the said order, appellant filed the present appeal. 3. Heard both sides and perused records. 4. Learned counsel for the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not eligible for the benefit of exemption of the said notification during the financial year 2005-06. In support of this submission, the appellant relied upon the decision in the case of Tamil Nadu Housing Board Vs. CCE, Madras [1994(74) ELT 9 (SC)] wherein the Supreme Court has held that the extended period is invokable only if existence of both situations (i) suppression, fraud, collusion etc. and (ii) intent to evade payment of duty. The phrase 'evade' in the context of proviso to Section 11A(1) of Central Excise and Salt Act, 1944 means defeating the provision of law of paying duty and it is made more stringent by use of the word 'intent'. The same analogy will also hold good in the case of levy of penalty under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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