https://www.taxtmi.com/caselaws?id=113358 Penalty under Rule 173Q of the Central Excise Rules and section 11AC of the Central Excise Act requires evidence of deliberate duty evasion, fraud, suppression of facts, or comparable culpable conduct. A stock shortage found during physical verification, coupled with delayed duty payment, does not by itself establish that requirement. Where the shortage was explained by peak-season workload and staff lapse, the duty was paid before adjudication, and no material showed intentional evasion, penalty is not sustainable. The duty demand remains undisturbed, while relief from penalty follows. en-us Mon, 16 Feb 2004 00:00:00 +0530 Fri, 04 May 2012 18:50:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113358 Penalty under Rule 173Q of the Central Excise Rules and section 11AC of the Central Excise Act requires evidence of deliberate duty evasion, fraud, suppression of facts, or comparable culpable conduct. A stock shortage found during physical verification, coupled with delayed duty payment, does not by itself establish that requirement. Where the shortage was explained by peak-season workload and staff lapse, the duty was paid before adjudication, and no material showed intentional evasion, penalty is not sustainable. The duty demand remains undisturbed, while relief from penalty follows. Case-Laws Central Excise Mon, 16 Feb 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113358