Excise penalty under Section 11AC sustained where goods were removed without invoice or stock register debit.

Removal of excisable goods without the prescribed invoice and without debiting the stock register constituted a clear contravention. The explanation based on challans and alleged pressure was unsupported by the record, and payment of duty only after departmental detection reinforced the breach. On these facts, the ingredients for penalty under Section 11AC of the Central Excise Act, 1944 were satisfied, and the penalty was upheld.

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Issues: Whether penalty under Section 11AC of the Central Excise Act, 1944 was sustainable on the facts of the case.

Analysis: The goods were removed without the prescribed invoice and without debiting the stock register. The explanation regarding challans and alleged pressure was not supported by the record, and the duty was paid only after departmental detection. In view of the established contravention, the ingredients for penalty under Section 11AC stood satisfied.

Conclusion: The penalty under Section 11AC was rightly imposed and the appeal was liable to be rejected.

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