https://www.taxtmi.com/caselaws?id=188664 Penalty under section 11AC of the Central Excise Act, 1944 is sustainable only where the department establishes fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty. Here, the assessee had paid the differential duty with interest before issuance of the show cause notice, and the concurrent findings recorded no such culpable intent in relation to the clearance of physician samples. On those facts, waiver of penalty by the lower appellate authorities was justified, and the penalty was held not leviable. The Court also noted departmental monetary limit instructions, but the decisive basis remained the absence of the statutory preconditions for penalty. en-us Fri, 15 Jan 2016 00:00:00 +0530 Fri, 06 Jan 2017 16:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188664 Penalty under section 11AC of the Central Excise Act, 1944 is sustainable only where the department establishes fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty. Here, the assessee had paid the differential duty with interest before issuance of the show cause notice, and the concurrent findings recorded no such culpable intent in relation to the clearance of physician samples. On those facts, waiver of penalty by the lower appellate authorities was justified, and the penalty was held not leviable. The Court also noted departmental monetary limit instructions, but the decisive basis remained the absence of the statutory preconditions for penalty. Case-Laws Central Excise Fri, 15 Jan 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188664