https://www.taxtmi.com/caselaws?id=2816 Penalty under Section 11AC of the Central Excise Act, 1944 depends on a recorded finding that duty non-payment, short-payment or suppression was accompanied by fraud, collusion, wilful misstatement, or other conduct with intent to evade duty. Prior payment of duty before the show cause notice does not by itself determine liability; the decisive requirement is proof of mens rea. On the same footing, personal penalty on a director requires a specific finding of knowledge, connivance, or deliberate participation in the alleged evasion. In the absence of such findings, both the statutory penalty and the director's penalty are not sustainable. en-us Tue, 28 Aug 2007 00:00:00 +0530 Thu, 18 May 2017 11:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2816 Penalty under Section 11AC of the Central Excise Act, 1944 depends on a recorded finding that duty non-payment, short-payment or suppression was accompanied by fraud, collusion, wilful misstatement, or other conduct with intent to evade duty. Prior payment of duty before the show cause notice does not by itself determine liability; the decisive requirement is proof of mens rea. On the same footing, personal penalty on a director requires a specific finding of knowledge, connivance, or deliberate participation in the alleged evasion. In the absence of such findings, both the statutory penalty and the director's penalty are not sustainable. Case-Laws Central Excise Tue, 28 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2816