https://www.taxtmi.com/caselaws?id=123777 Equal penalty under Section 11AC of the Central Excise Act was held not attracted where short payment arose from a bona fide clerical error in valuing clearances to sister units under Rule 8, and the assessee corrected the mistake and paid the differential duty and interest before issue of the show cause notice. The record showed that the stock transfers were disclosed in returns and correspondence, and there was no fraud, wilful misstatement, suppression of facts, or intent to evade duty. On those facts, pre-notice payment coupled with absence of mens rea defeated mandatory penalty, and the departmental appeal failed. en-us Fri, 29 Feb 2008 00:00:00 +0530 Thu, 20 Sep 2012 13:44:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=123777 Equal penalty under Section 11AC of the Central Excise Act was held not attracted where short payment arose from a bona fide clerical error in valuing clearances to sister units under Rule 8, and the assessee corrected the mistake and paid the differential duty and interest before issue of the show cause notice. The record showed that the stock transfers were disclosed in returns and correspondence, and there was no fraud, wilful misstatement, suppression of facts, or intent to evade duty. On those facts, pre-notice payment coupled with absence of mens rea defeated mandatory penalty, and the departmental appeal failed. Case-Laws Central Excise Fri, 29 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=123777