TMI BlogExemption Notification No. 23/2003-CE Must Be Strictly Interpreted; Duty Demand Upheld While Penalties Set AsideThe CESTAT upheld the demand for short payment of duty under Section 11A(1) of Central Excise Act, 1944 with interest under Section 11AB, confirming that exemption Notification No. 23/2003-CE must be interpreted strictly per established jurisprudence. The Tribunal determined that the appellant's immediate substantial DTA clearances after establishing an EOU indicated improper intent. However, the Tribunal set aside penalties imposed under Section 11AC read with Rule 25 of Central Excise Rules, 2002 and FTP. Penalties against individual appellants were also set aside, as they were improperly based solely on knowledge rather than specific acts of omission or commission. The appeal was partially allowed, with duty and interest demands sustained but penalties vacated. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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