Penalty u/s. 11AC r.w. Rule 25 cannot be imposed for suppression or contravention of facts unless it was made intentionally

Penalty can be imposed within the framework of Section 11AC of the Act.  Rule 25 of the Central Excise Rules which deals with penalty also can be applied subject to provisions of Section 11AC.  As indicated above, penalty can be imposed when non payment or short payment of duty etc. was actuated by fraud, collusion, wilful mis-statement or suppression of facts or contravention of any of the provisions of the Act or rules made thereunder “with intent to evade payment of duty”. Even if a case of suppression of facts or contravention of any provision were made out, it is clear that suppress...