CCE Vs. ASSOCIATED PIGMENTS LTD.

JUDGEMENT

(1.) THE appeal No. E/482/09 is by the department against the order of the Commissioner (Appeals) No. 194 -195/CE/LKO/08 dt.26.11.2008. The cross objection No. E/90/09 -SM is connected to this appeal which is basically in support of the order of the Commissioner (Appeals).

(2.) HEARD both sides.

(3.) 1 Learned SDR submits that in respect of Rs. 19,961/ - relating to clearance of finished goods without accounting and without payment of duty which stands admitted, the Commissioner (Appeals) erred in not imposing penalty equal to duty evaded. This is in violation of Rule 25 of Central Excise Rules, 2002 read with Section 11AC. He also submits that Rule 25 derives its spirit from the provision of Section 11AC of the Act and therefore amount equal to duty evaded should have been imposed as penalty.