CESTAT Chennai: Penalty Waived for Central Excise Act Violation

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellant, waiving the penalty imposed under Section 11AC of the Central Excise Act, 1944, due to lack of deliberate suppression or fraud, despite confusion over dutiability of materials used in a captive power plant. The appeal was partly allowed based on the specific circumstances of the case.

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The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellant, waiving the penalty of Rs. 29,58,725 imposed under Section 11AC of the Central Excise Act, 1944. The confusion regarding the dutiability of certain materials used in a captive power plant led to the penalty, but there was no deliberate suppression or fraud. The appeal was partly allowed due to the peculiar circumstances of the case.

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