TaxTMI 
TaxTMI 
2018 (7) TMI 163
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....s classifiable under Chapter Heading No.3004 of Central Excise Tariff Act, 1985. It has been allegation of the Department that the appellants have removed the physician samples from their manufacturing factory during the period from April, 2005 to February, 2007 by adopting valuation of their physician samples as per provisions of Rule 8 of Central Excise Valuation Rules, 2000. Rather than following the provisions of Section 4 (1)(b) of the Central Excise Act, 1944 read with the provisions of Rule 4 of the Central Excise Valuation Rules, 2000, as well as CBEC's Circular No.813/10/2005-CX dated 25.04.2005., it had been alleged that wrong practice adopted by the appellant in valuing the physician samples resulted into short payment of duty of....
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....r they were following the Guidelines provided by CBEC vide their earlier Circular dated 1st July, 2002 and since the entire amount of duty as well as interest has already been paid by them before the matter came to be adjudicated, penalty under Section 11AC of Central Excise Act, 1944, was not imposable on them. 5. We have heard the ld.D.R. for the Revenue, who has reiterated the grounds on which penalty has been imposed by the ld.Commissioner (Appeals). 6. We have heard both sides and also perused the record of the appeal. 7. At the outset, it is to mention that the ld.Advocate for the appellant has categorically mentioned and given in writing that he is not opposing the confirmation and payment of differential amount of Central Excise ....
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....ayment of Central Excise duty which was later on made good by making payment of equal amount of Central Excise duty, has resulted only because of ignorance and not because of any intention to evade duty and therefore, the provisions of Section 11AC in this case, are not invokable and no penalty under this Section is imposable. While holding the above view, we also take shelter of the judgement of the Hon'ble Supreme Court in the case of Commr. of Central Excise, Chandigarh Vs. Pepsi Foods Ltd. : 2010 (260) ELT 481 (S.C.) The relevant extracts are reproduced here below : "19. From a perusal of the aforesaid section, especially the underlined portion, it is clear that in order to attract the penalty provision under Section 11AC, criminal in....