https://www.taxtmi.com/caselaws?id=109984 Warranty replacement goods remained liable to central excise duty when cleared, because free replacement under warranty did not take them outside excisability and the demand was sustained. Penalty under Section 11AC was deleted, as the record did not establish fraud, wilful misstatement, suppression of facts, or intent to evade duty. Penalty under Rule 173Q was upheld because the assessee cleared the goods without duty and without following the prescribed procedure despite prior adverse adjudications, but one penalty was reduced from Rs. 5 lakhs to Rs. 1 lakh for proportionality. en-us Mon, 25 Aug 2003 00:00:00 +0530 Fri, 13 Apr 2012 12:54:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109984 Warranty replacement goods remained liable to central excise duty when cleared, because free replacement under warranty did not take them outside excisability and the demand was sustained. Penalty under Section 11AC was deleted, as the record did not establish fraud, wilful misstatement, suppression of facts, or intent to evade duty. Penalty under Rule 173Q was upheld because the assessee cleared the goods without duty and without following the prescribed procedure despite prior adverse adjudications, but one penalty was reduced from Rs. 5 lakhs to Rs. 1 lakh for proportionality. Case-Laws Central Excise Mon, 25 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109984