2009 (10) TMI 324

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.... for the Respondent. [Order]. - The limited challenge in this appeal is against the penalty imposed on the appellant by the original authority and sustained by the appellate authority. The appellant was engaged in the manufacture of excisable goods during the material period. Some time in July/August, 2005, machinery and materials in their factory suffered heavy damage due to floods of the mons....

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....se Rules, 2002 read with Section 11 AC of the Act. These demands /proposals were contested. In adjudication of the dispute, the original authority confirmed the demand of duty against the assessee to the extent of Rs. 6,75,126/-and imposed on them equal amount of penalty under Section 11AC. Against the order of adjudication, the assessee preferred appeal to the Commissioner (Appeals), who only sus....

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....t, if any producer, manufacture, registered person of a warehouse or a registered dealer,-- (a) removes any excisable goods in contravention of any of the provisions of these rules or the notifications issued under these rules; or (b) does not account for any excisable goods produced or manufactured or stored by him; or (c) engages in the manufacture, production or storage of any excisabl....

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....lt in the above provision of law and, therefore, no fault can be found with the penalty imposed on the assessee by the original authority. This argument cannot be considered without reservations. Section 11AC of the Act is a self-contained penal provision which enumerates the grounds on which a penalty under this provision could be imposed on a manufacturer of excisable goods and also specifies th....