2008 (1) TMI 800

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.... Gautam, DR, for the Respondent. [Order]. - By Final Order No. 777/06 dated 18-5-06, the Tribunal set aside the penalty imposed under Section 11AC of Central Excise Act, 1944 as the appellant deposited the duty before issue of show cause notice. The revenue filed appeal before the Hon'ble High Court of Punjab & Haryana against the order of the Tribunal. By order and judgment dated 1-5-07, th....

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....ules with intend to evade payment of duty as laid down under Section 11AC of the Act. The legal issue raised in the appeal having already been decided by this Court and the issue of mens rea having not been specifically deal with by the Tribunal, in our view the matter will require reconsideration by the Tribunal." 2. The learned Advocate submits that the applicant is a new licensee and fa....

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....le High Court of Delhi in the case of CE v. Malbro Appliances Pvt. Ltd. reported in 2007 (208) E.L.T. 503. 3. The learned DR on behalf of the Revenue submits that the applicant had obtained registration in March, 2002 and Central Excise officers visited in the month of February, 2003 and they have detected non-payment of duty by the appellants. He submits that it is a clear case of suppres....

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....d the duty. The submission of the Ld Advocate that the appellants did not pay the duty on the bona fide belief of the trade practice, has no force. I find that it is clear case of suppression of fact with intent to evade payment of duty and Section 11AC would be invoked in this case. The Hon'ble Delhi High Court in the case of Malbro Appliances Pvt. Ltd. (supra) held that the assessee paid duty be....