2012 (8) TMI 4

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....sp; Per: S.S. Kang   The Revenue filed this appeal against the order-in-appeal passed by the Commissioner (Appeals) whereby a demand of Rs.4,38,209/- is confirmed and the Commissioner (Appeals) reduced the penalty imposed under Section 11AC of the Act. The Revenue filed the appeal challenging the order whereby the penalty under Section 11AC of the Act is reduced. 2. The present respo....

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.... value of grey fabric, which resulted in short payment of duty by the assessee. 5. In the cross objections the contention of the assessee is that the demand is time barred as the assessee was filing price declarations after taking into consideration the price of the fabric as declared by the merchant manufacturers in the challans under which the fabric is received and there is no evidence on re....

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....d. Therefore the demand by invoking the extended period is sustainable and the assessee is liable for penalty under Section 11AC and the authorities under the Act have no power to reduce the penalty as per the decision of the Hon ble Supreme Court in UOI vs. Dharmendra Textile Processors 2008 (231) ELT 3 (SC). 8. We find that the allegation against the assessee is that the cost of grey fabric i....

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....e assessee has connived with the merchant manufacturers in suppression of the price of the grey fabric, we find merit in the contention of the assessee that the allegation of suppression with intent to evade payment of duty is not sustainable. In these circumstances, we find that the demand is time barred. In the appeal filed by the Revenue we find that the Revenue is seeking imposition of penalty....