TaxTMI 
TaxTMI 
2006 (4) TMI 60
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....d.19.7.2004 passed by the Customs Excise and Service Tax Appellate Tribunal. 3. By the impugned order the Tribunal has deleted the penalty levied under Section 11 AC of the Central Excise Act, 1954 holding as under : "The appellants are not disputing their duty liability and we observe that even in January, 2000 when they had cleared the machines in CKD Condition they had paid an amount @10% of ....
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....of the show cause notice, no penalty can be imposed under Section 11AC of the Central Excise Act. In the facts and circumstances of the present case, we hold that no penalty is imposable on any of the Appellants. We, therefore, set aside the penalties imposed on them." 4. The contention of the appellant is that the Tribunal has erred in waiving and reducing the penalty as penalty leviable under S....
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....y in certain cases :- Where any duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded by reasons of fraud, collusion or any willful misstatement or suppression of facts or contravention of any of the provisions of this Act or of the Rules made thereunder with intent to evade payment of duty, the person who is liable to pay duty as determined unde....
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....fraud, collusion or willful misstatement or suppression of fact or contravention of any provision of the Act with intent to evade payment of duty. Thus on account of statutory provision before levy of penalty finding of mens rea or guilty mind is a condition precedent. In the absence of such finding penalty under Section 11AC cannot be revived. 10. In the present case as we have noticed above, th....