TaxTMI 
TaxTMI 
Whether both the penalty under section 11A(5) and 11AC can be imposed on a manufacture on account of fraudulent availment of cenvat credit during the year 2011-12.
Imposition of penalty both under section 11A and 11AC.
05 Sep 2014 
3 Replies 
5006 Views Asked by
Double jeopardy: the same excise act should not trigger both audit-based and fraud-based penalties concurrently.
Whether both penalties may be imposed turns on distinct statutory triggers: the audit-discovered short-levy penalty under Section 11A(5), applicable when particulars exist in the assessee's records, and the fraud-based penalty under Section 11AC, applicable when duty is evaded by fraud, collusion, wilful misstatement, suppression of facts or intentional contravention. The same factual act should not attract both penalties for the identical offence; constitutional protection against double jeopardy operates as a limiting principle. (AI Summary)
Whether both penalties may be imposed turns on distinct statutory triggers: the audit-discovered short-levy penalty under Section 11A(5), applicable when particulars exist in the assessee's records, and the fraud-based penalty under Section 11AC, applicable when duty is evaded by fraud, collusion, wilful misstatement, suppression of facts or intentional contravention. The same factual act should not attract both penalties for the identical offence; constitutional protection against double jeopardy operates as a limiting principle. (AI Summary)