No Penalty u/s 11A (4) of Central Excise Act in Absence of Tax Evasion

Universal Bituminous Industries Pvt. Ltd. Vs Commr. of CGST & CX (CESTAT Kolkata)

A Show Cause Notice dated 04/04/2019 was issued demanding an amount of Rs. 67,505/- (i.e 6% of 10% of traded goods) on traded items to the tune of Rs.1,12,50,819/- during the Financial Year 2013-14 2.2. The Ld. Adjudicating Authority confirmed the demand and ordered for recovery of Rs.67,505/- under Rules 6(3) of the Cenvat Credit Rules, 2004 read with section 11A(4) of the Central Excise Act, 1944. Penalty of equal amount was also imposed.

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