CCE Vs. MAHALAXMI INDUSTRIES

JUDGEMENT

(1.) IN this case the Revenue has filed an appeal against the decision of the Commissioner(Appeals) wherein he has given an option to the respondents to pay 25% of mandatory penalty equal to duty imposed Under Section 11AC of Central Excise Act, 1944 along with interest on duty within 30 days of the receipt of the Order in Appeal. It is the contention of the Department that the payment made by the respondents as regards duty was not voluntary and therefore they are not entitled to this benefit in addition to the argument that Commissioner(Appeals) could not have extended this benefit in terms of law.

(2.) A similar issue was considered by this Tribunal in the case of Balaji Exports Appeal No. E/1283/08 wherein also the duty had been paid before issue of show cause notice. In that order a conclusion has been reached that in view of the conflicting decisions prevailing during the past, the appellant should be given one more opportunity to deposit the duty, penalty and interest within 30 days of the order which can be either of the Commissioner(Appeals) or Tribunal. The relevant portion of the order is reproduced below: