https://www.taxtmi.com/caselaws?id=108338 Penalty under Section 11AC of the Central Excise Act was not sustainable on the alleged 242 bags of yarn because the only default was non-debiting in the PLA, treated as a procedural lapse without established evasion or non-levy. The penalty could therefore not extend to the full duty relatable to that quantity. In contrast, clandestine removal was established only for the seized 8 bags, so a duty-linked penalty was maintainable for that limited extent, though it need not equal the duty amount. The penalty was accordingly restricted to Rs. 5,000 for the proved liability on the seized goods. en-us Fri, 15 Nov 2002 00:00:00 +0530 Sat, 31 Mar 2012 11:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108338 Penalty under Section 11AC of the Central Excise Act was not sustainable on the alleged 242 bags of yarn because the only default was non-debiting in the PLA, treated as a procedural lapse without established evasion or non-levy. The penalty could therefore not extend to the full duty relatable to that quantity. In contrast, clandestine removal was established only for the seized 8 bags, so a duty-linked penalty was maintainable for that limited extent, though it need not equal the duty amount. The penalty was accordingly restricted to Rs. 5,000 for the proved liability on the seized goods. Case-Laws Central Excise Fri, 15 Nov 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108338