COMMISSIONER OF CUS Vs. JINDAL VIJAYANAGAR STEEL LTD

JUDGEMENT

(1.) This appeal is filed by the Revenue being aggrieved by the order passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Bangalore (hereinafter called as CESTAT) in Appeal No. 197/2004, dated 27-7-2004 [2004 (177) E.L.T. 937 (Tri.-Bang.)] wherein the Tribunal having confirmed the confiscation, has set aside the order of penalty imposed upon the respondent on the ground that the duty has been paid before show cause notice was issued and therefore no penalty could be imposed. The appeal has been admitted on 10-3-2006 for consideration of the following questions of law.

(2.) We have heard the learned counsel appearing for Revenue.

(3.) Learned counsel appearing for the appellants submitted that in the judgment of the Hon'ble Supreme Court in the case of Union of India and Others v. Dharamendra Textile Processors and Others, 2008 306 ITR 277 (SC) and in the case of Union of India v. Rajasthan Spinning and Weaving Mills, 2009 13 SCC 448. it was held that mere fact that assessee who deposited duty before issuance of show cause notice would not absolve the assessee of paying penalty and interest. Therefore order of the Tribunal is liable to be set aside by answering the substantial question of law in the affirmative.