2012 (11) TMI 121

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....1. Heard the ld.A.R.. None present for the respondents. 2. Revenue filed this appeal against Order-in-Appeal No.06/Kol-VII/2011 dated 25.01.2011 whereby ld.Commissioner(Appeals) upheld the lower adjudicating authority s order barring imposition of penalty under section 11AC. 3. Briefly stated facts of the case are that the respondents are engaged in the manufacture and sale of Crucible for I....

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....lated the provisions of the said rules and availed the undue benefit in the process and it was with a mala fide intention to evade payment of duty. In such factual background the lower adjudicating authority has correctly imposed penalty under section 11AC. Whereas the ld.Commissioner(Appeals) has not imposed penalty under section 11AC on the ground that it was not a case of suppression of fact an....

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....ve been cleared without payment of duty and the consequences and penalties as provided in these rules shall follow. I find that it is not a case of suppression of fact with intend to evade payment of duty. Penalty under Sec. 11AC of the Central Excise Act, 1944 is imposable for an act of deliberate deception by the assessee with the intent to evade duty by adopting any of the means mentioned in th....

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....d in sub-rule (1), then notwithstanding anything contained in said sub-rule (1) and sub-rule (4) of rule 3 of CENVAT Credit Rules, 2004, the assessee shall, pay excise duty for each consignment at the time of removal, without utilizing the CENVAT credit till the date the assessee pays the outstanding amount including interest thereon; and in the event of any failure, it shall be deemed that such g....