2003 (7) TMI 82

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....pression was not wilful in view of the fact that suppression is always wilful and also when the word wilful in Sections 11AC and 11AB of the Central Excise Act, 1944 is to be read with "misstatement" only and no with "suppression of facts"? (ii) "Whether the CEGAT was right in waiving the Mandatory penalty under Section 11AC of the Central Excise Act, 1944 and the levy of interest under Section 11AB of the Central Excise Act, 1944 in the instant case when there is clear cut suppression of facts ('d' factor) on the part of the party?" 2.Respondent No. 1 M/s. D.K. Alloy (Private) Limited, Ludhiana is engaged in the manufacture of hot re-rolled products of non-alloy steel which is chargeable to duty in terms of Section 3A of the 1944, Ac....

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...., Rules. Respondent No. 1 was also given notice for recovery of interest under Section 11AB and imposition of mandatory penalty under Section 11AC of the 1944, Act read with Rules 9(2) and 173Q of the 1944, Rules. 5.After hearing the representative of respondent No. 1, the adjudicating authority passed order dated 27-10-1999 vide which it confirmed the demand of Rs. 5,14,585/-. The adjudicating authority also levied interest at the rate of 12% and imposed penalty of Rs. 5,15,000/-. The Commissioner (Appeals) allowed the appeal filed by respondent. No. 1 vide his order dated 12-5-2000 and quashed the levy of interest and penalty. He held that respondent No. 1 had discharged its duty liability and there was no justification to penalise it ....