Case Note & Summary
The Commissioner of Central Excise filed an appeal under Section 35G of the Central Excise Act, 1944 against the order dated 29th October 2009 passed by the Customs, Excise and Sales Tax Appellate Tribunal (CESTAT), West Zonal Bench at Mumbai. The appeal involved a central excise duty recoverable from the respondent, M/s Techno Economic Services Pvt. Ltd., in the sum of Rs.1,21,219/-. The question of law sought to be raised related to the imposition of penalty on the respondent. The Tribunal had considered the issue in paragraph 10 of its judgment and held that penalty under Section 11AC of the Central Excise Act, 1944 is not automatic and requires mens rea. The High Court, after hearing the learned counsel for the appellant and perusing the appeal and the impugned order, found no fault with the Tribunal's view. The Court held that no substantial question of law arises and dismissed the appeal.
Headnote
A) Central Excise - Penalty under Section 11AC - Mens Rea Requirement - Section 11AC of Central Excise Act, 1944 - The issue was whether penalty under Section 11AC is automatic or requires mens rea. The Tribunal held that penalty is not automatic and requires mens rea. The High Court found no fault with the Tribunal's view and dismissed the appeal as no substantial question of law arose. (Paras 2-3)
Issue of Consideration
Whether the Tribunal was correct in setting aside the penalty imposed under Section 11AC of the Central Excise Act, 1944, on the ground that penalty is not automatic and requires mens rea.
Final Decision
Appeal dismissed. No substantial question of law arises.
Law Points
- Penalty under Section 11AC of Central Excise Act
- 1944 is not automatic
- requires mens rea
- Tribunal's finding of fact not interfered with if no perversity
