2004 (8) TMI 199

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..... 1. (a) For the period April 1994 to July 1996 differential duty amount of duty were demanded of Rs. 4,00147/- on Air Conditioners and Rs. 7,462/- on Water Coolers and Rs. 4,07,609/- as penalty under Section 11AC and Rs. 25,000/- as penalty under Rule 173Q were confirmed by the impugned older passed by the Commissioner (Appeals). (b) The Appellants had paid differential duty on Air conditi .....

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..... ed/transferred on stock transfer basis. 2. On consideration of the issues after hearing both sides, it is found - (a) Depot prices, became material for payment of duty only on and from 28th September, 1996. Therefore, no duty could have been demanded on depot sale price during the relevant period. Hence, show cause is illegal and not sustainable in law. (b) Appellants were not requir .....

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..... the same no demands could be confirmed in this case. When no duty demand is sustainable, no penalty is imposable. Therefore, imposition of penalty under section 11AC and under rule 173Q and interest under Section 11AB not sustainable following. Indian Oil Corpn v. Comm. C. Ex. - 2002 (144) E.L.T. 616. Moreover Section 11AB and Section 11AC came into effect only from 28th September, 1996. No ret .....

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