https://www.taxtmi.com/caselaws?id=262979 Penalty under Rule 57U read with Section 11AC of the Central Excise Act is attracted only where non-payment of duty is accompanied by fraud, collusion, wilful misstatement, suppression of facts, or intent to evade duty. The Bombay HC noted that the goods were cleared on commercial invoices and the non-payment arose from a bona fide belief that the goods were waste and not dutiable. That factual finding was not shown to be perverse, so the mandatory precondition for penalty was absent. Payment of duty and interest before the show cause notice did not by itself decide the issue, but the absence of intent to evade was decisive, so penalty was not leviable. en-us Fri, 27 Mar 2015 00:00:00 +0530 Thu, 01 Oct 2015 11:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=262979 Penalty under Rule 57U read with Section 11AC of the Central Excise Act is attracted only where non-payment of duty is accompanied by fraud, collusion, wilful misstatement, suppression of facts, or intent to evade duty. The Bombay HC noted that the goods were cleared on commercial invoices and the non-payment arose from a bona fide belief that the goods were waste and not dutiable. That factual finding was not shown to be perverse, so the mandatory precondition for penalty was absent. Payment of duty and interest before the show cause notice did not by itself decide the issue, but the absence of intent to evade was decisive, so penalty was not leviable. Case-Laws Central Excise Fri, 27 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=262979