https://www.taxtmi.com/caselaws?id=426915 Penalty under Section 11AC of the Central Excise Act, 1944 is sustainable only where the notice and record contain specific allegations of fraud, collusion, wilful misstatement or suppression of facts with intent to evade duty. Here, duty was paid on depot clearances on a transaction-value basis, and both duty and interest had been discharged before the show-cause notice. As the notice and adjudication record did not establish the required mens rea-based ingredients for penalty, the penal action under Rule 25(1)(d) read with Section 11AC could not be maintained. The penalty was therefore set aside. en-us Fri, 26 Aug 2022 00:00:00 +0530 Mon, 29 Aug 2022 08:30:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=426915 Penalty under Section 11AC of the Central Excise Act, 1944 is sustainable only where the notice and record contain specific allegations of fraud, collusion, wilful misstatement or suppression of facts with intent to evade duty. Here, duty was paid on depot clearances on a transaction-value basis, and both duty and interest had been discharged before the show-cause notice. As the notice and adjudication record did not establish the required mens rea-based ingredients for penalty, the penal action under Rule 25(1)(d) read with Section 11AC could not be maintained. The penalty was therefore set aside. Case-Laws Central Excise Fri, 26 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=426915