CCE Vs. SILVER OAK GARDENS RESORT

JUDGEMENT

(1.) THE Revenue challenges the order dated 15.4.2007 setting -aside the penalties imposed by the adjudicating authority on the respondent under Sections 76 and 78 of Chapter V of the Finance Act, 1994.

(2.) THE order of the Commissioner (Appeals) setting -aside the appeal has been challenged by the Revenue on the ground that the decision of the Larger Bench in CCE Delhi v. Machino Montel Industries Ltd. was reversed by the High Court of Punjab and Haryana by its decision reported in 2006 (4) STR 177 and, therefore, the very basis on which the impugned order was made does not exist.

(3.) IN the context of the provisions of Section 11AC which is similar to the provisions of Section 78 of the said Act, the Supreme Court has held in Zunjarrao Bhikaji Nagarkar v. Union of India that levy of penalty under Section 11AC was imperative and not discretionary and that the liability for payment of duty depends upon the findings on merits in respect of the three constituents of Section 11AC. The learned authorized representative for the department has reiterated the contentions raised in the memo of appeal.