9911796707
TMI Blog2001 (8) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... ures drugs. On a surprise visit the officers found that goods valued at Rs. 16,09,695/- had been cleared by them under cover of seven invoices showing payment of duty amounting to Rs. 2,89,745.10; but that debit entries had not been made either in the PLA or in the Modvat registers namely RG 23A, Part-II, RG 23C, Part II. Show cause notice was issued seeking recovery of the duty under Rule 292 rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso imposed penalty under both the provisions as alleged. 2.The assessee then filed an appeal. The Commissioner (Appeals) disposed off the appeal in the following manner : "I have gone through the appeal records and considered the submissions made by the appellants in their appeal memorandum and also submissions made during the course of personal hearing. The short point for my consideration is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 11AC of the Act, 1944. However, it is observed that the appellants had contravened the provisions of Rule 9(1) read with Rule 173F inasmuch as they had removed the goods without making debit entry in the RG 23A Pt. II accounts. Therefore, the penalty under Rule 173Q is justified." 3.Against this finding of the Commissioner (Appeals) the assessee has filed appeal No. E/299/2001. The pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal, the assertion that penalty was mandatory under Section 11AC, I find the Tribunal judgment in the case of Escorts JCB Ltd. v. C.C.E., New Delhi [2000 (118) E.L.T. 650 (T) = 1999 (35) RLT 9] to be relevant. In this judgment the Tribunal held that the limit fixed in Section 11AC was the maximum limit and that it was not mandatory that in all the cases the maximum alone should be imposed. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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