CCE Vs. ARVIND STEEL AND AGRO INDUSTRIES

JUDGEMENT

(1.) In this appeal, which has been filed against the Order -in -Appeal of the Commissioner (Appeals), the Revenue has questioned the dropping of the penalty of Rs. 10,000 confirmed on the respondents under Rule 173Q, by the adjudicating authority, while confirming the demand of duty of Rs. 49,193, on account of shortage of the raw material and finished goods.

(2.) The respondents have filed the cross objections wherein they have reiterated the correctness of the impugned order. They prayed for the decision on merits.

(3.) The learned JDR has contended that the penalty under Rule 173Q could not be dropped against the respondents for the simple reason that they deposited the duty before issuance of show cause notice. According to him, this deposit was not voluntary, but it was on the asking by the Officers of Central Excise.