High Court affirms penalty for duty evasion under Central Excise Act.

The High Court upheld the Tribunal's decision to impose a penalty under section 11AC of the Central Excise Act on the appellants for availing credit before receiving goods with proper duty paying documents, resulting in a shortage in their Cenvat account. The Court found that the appellants' actions amounted to deliberate evasion of duty payment, justifying the penalty. The appeal filed under section 35G(1) was dismissed for lack of merit, and the parties were instructed to obtain a certified copy of the order within a week.

---

---

Issues involved: Appeal u/s 35G(1) of Central Excise Act against Tribunal's order affirming penalty u/s 11AC for availing credit before receipt of goods with duty paying documents.

Summary:
The appeal was filed u/s 35G(1) of the Central Excise Act against the Customs, Excise and Service Tax Appellate Tribunal's order imposing penalty u/s 11AC. The Hon'ble Supreme Court had remanded the matter back for reconsideration in light of a previous decision. The Tribunal found that the appellants had availed credit before receiving goods with proper duty paying documents, leading to a shortage in their Cenvat account. As per the decision of the Supreme Court, deliberate actions to evade duty payment warrant penalty u/s 11AC. The Tribunal rightly concluded that the appellants were liable for penalty under this section. The High Court, upon review, found no grounds to interfere with the Tribunal's order and dismissed the appeal for lack of merit. The parties were directed to receive a certified copy of the order within a week.

---