https://www.taxtmi.com/caselaws?id=125568 Penalty under Section 11AC of the Central Excise Act, 1944 was found inapplicable where the default was only delayed payment of duty and the duty and interest had been paid before adjudication. Because the clearances were made under invoices and returns reflected the liability, the facts did not establish fraud, suppression, wilful misstatement, or intent to evade duty. The appropriate consequence was the lesser penalty under Rule 27 of the Central Excise Rules, 2002, which is capped at Rs. 5,000 for such contraventions. The original Section 11AC penalty was therefore not sustained. en-us Tue, 14 Jul 2009 00:00:00 +0530 Fri, 26 Oct 2012 14:42:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=125568 Penalty under Section 11AC of the Central Excise Act, 1944 was found inapplicable where the default was only delayed payment of duty and the duty and interest had been paid before adjudication. Because the clearances were made under invoices and returns reflected the liability, the facts did not establish fraud, suppression, wilful misstatement, or intent to evade duty. The appropriate consequence was the lesser penalty under Rule 27 of the Central Excise Rules, 2002, which is capped at Rs. 5,000 for such contraventions. The original Section 11AC penalty was therefore not sustained. Case-Laws Central Excise Tue, 14 Jul 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=125568