https://www.taxtmi.com/caselaws?id=176695 Where duty was confirmed on clandestinely removed finished goods, a separate customs duty demand on the raw materials used to manufacture those goods was held unsustainable, because the liability attached to the diverted final products and the input duty stood extinguished once duty was recovered on the finished goods. Penalty under section 11AC of the Central Excise Act, 1944 was nevertheless upheld on the confirmed duty for clandestine removal, as the statutory conditions for mandatory penalty were satisfied. The appeal thus succeeded on the raw-material duty issue but failed on the penalty issue. en-us Wed, 31 Dec 2014 00:00:00 +0530 Mon, 28 Dec 2015 10:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=176695 Where duty was confirmed on clandestinely removed finished goods, a separate customs duty demand on the raw materials used to manufacture those goods was held unsustainable, because the liability attached to the diverted final products and the input duty stood extinguished once duty was recovered on the finished goods. Penalty under section 11AC of the Central Excise Act, 1944 was nevertheless upheld on the confirmed duty for clandestine removal, as the statutory conditions for mandatory penalty were satisfied. The appeal thus succeeded on the raw-material duty issue but failed on the penalty issue. Case-Laws Central Excise Wed, 31 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=176695