2018 (1) TMI 961

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....pellants exported MS Cold Rolled Section falling under Chapter Heading No. 72166900 of the Central Excise Tariff Act, 1985 to M/s DN Construction, Post Box No. 107, Phendulan (Thimpu) Bhutan for an amount of Rs. 26,86,100/-. The appellants vide their letter dated 27.04.2007 submitted the certificate of foreign inward remittance issued by Vijaya Bank, New Delhi for the goods, on which a total amount of Rs. 24,32,430/- has been shown as received. The appellants did not submit the proof of export for the goods valued at Rs. 2,53,670/- involving Central Excise duty of Rs. 40,587/- as BED and Rs. 812/- as Ed. Cess as required in terms of Notification No.45/2001-CE(NT) dated 26.06.2001. The appellants vide their letter dated 23.11.2007 instead of....

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....he Appellate Authority who while confirming the demand of Rs. 41,399/- set aside the penalty by observing as under:- "In view of the violation, demand of duty on the short realized amount is justified and confirmed. With regard to penalty amounting to Rs. 41,399/- imposed under Section 11AC of the Central Excise Act, 1944, the original authority observed that the appellants have deliberately and knowingly avoided the payment of duty in spite of the fact that their export proceeds were not realized in full and duty liability arisen in terms of Notification No. 45/2001 dated 26.06.01. However, the letter dated 05.01.08 of the buyer as mentioned in para 1 at page 3 of Order-in-Original is on record which speaks about debiting of appellants....