https://www.taxtmi.com/caselaws?id=124908 Penalty under Section 11AC of the Central Excise Act is not sustainable merely because duty is payable. Its imposition requires material establishing suppression of facts with intent to evade duty. Where goods were cleared under challans for job work, uncertainty existed over duty on scrap generated at the job worker's premises, and duty was deposited before the show cause notice, the statutory conditions for penalty were not met. The duty demand remained uncontested, but the penal consequence was deleted, resulting in partial relief. en-us Tue, 29 Jul 2008 00:00:00 +0530 Wed, 17 Oct 2012 10:15:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=124908 Penalty under Section 11AC of the Central Excise Act is not sustainable merely because duty is payable. Its imposition requires material establishing suppression of facts with intent to evade duty. Where goods were cleared under challans for job work, uncertainty existed over duty on scrap generated at the job worker's premises, and duty was deposited before the show cause notice, the statutory conditions for penalty were not met. The duty demand remained uncontested, but the penal consequence was deleted, resulting in partial relief. Case-Laws Central Excise Tue, 29 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=124908