https://www.taxtmi.com/caselaws?id=170261 Penalty under Section 11AC is not warranted where duty is paid before the show cause notice on a bona fide belief that free-supplied materials were not includible in assessable value, because absence of intent to evade defeats the penal requirement. By contrast, where the value of free-supplied materials must be added to assessable value and the assessee accepts and pays the differential duty, penalty under Rule 173Q remains maintainable. The stated ratio distinguishes between culpable evasion-based penalty and a separate penalty arising from accepted valuation liability. en-us Tue, 26 Oct 2010 00:00:00 +0530 Thu, 21 May 2015 11:38:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=170261 Penalty under Section 11AC is not warranted where duty is paid before the show cause notice on a bona fide belief that free-supplied materials were not includible in assessable value, because absence of intent to evade defeats the penal requirement. By contrast, where the value of free-supplied materials must be added to assessable value and the assessee accepts and pays the differential duty, penalty under Rule 173Q remains maintainable. The stated ratio distinguishes between culpable evasion-based penalty and a separate penalty arising from accepted valuation liability. Case-Laws Central Excise Tue, 26 Oct 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=170261