2016 (2) TMI 285

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....harge the interest and penalty on the inputs/capital goods cleared during the period August 2001 to November 01. We find from the records that appellant's factory was audited by the Audit Department and they noticed, during the period 2001-02 and 2002-03 appellant had removed inputs/capital goods and paid an amount of Rs. 1,92,824/- as differential duty on being pointed out by the audit department which was in respect of valuation of the goods cleared by them. Appellant did not discharge interest and penalty liability. The lower authorities issued show-cause notice dated 12.05.2006 for appropriating the amount of differential duty paid by the appellant and also to recovery of interest and penalty. We find the main ground taken by the ap....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....their Lordships held that extended period cannot be invoked for the demand of duty. The same arguments may be used for seeking relief from imposition of penalty and interest. We, with respect reproduce the ratio in paragraphs number 10, 11, 12 and 13 of the judgment. 10. In essence, what sub-section (2) of Section 11A provides for is for non-issuance of notice by the Central Excise Officer to the extent a manufacturer might have voluntarily paid duty even before issuance of show cause notice. When Explanation-2 provides that said provision would not apply in case of fraud, collusion, wilful misstatement, suppression and intention to evade duty, it clearly means that sub-section (2B) is applicable where the normal period of limitati....