WESTERN ELECTRICAL CO., Vs. CCE

JUDGEMENT

(1.) THIS is a case of confirmation of duly demand of Rs. 12,34,498/ - on the ground that the appellant had cleared electric transformers and parts and electrical stampings etc. without payment of duty. The appellants paid the full amount of duty before issue of show cause notice. The matter reached the Tribunal and the Tribunal vide Order No. A/876 -878/WZB/AHD/2004/C -II dated 16.9.2004, held that the duty was rightly demanded and correctly paid. It was also held that request for recalculation of the exact amount liable to be paid was not pressed. Penalty under Section 11AC was set aside on the ground that once the duty is paid before the show cause notice, penalty was not imposable under Section 11AC. Penalty on the proprietor under Rule 209(a) was set aside on the ground that he was proprietor. Against this order Revenue went in appeal and Hon'ble Gujarat High Court framed the following substantial questions of law.

(2.) THEREAFTER the matter has been remanded setting aside order of the Tribunal with the following direction:

(3.) LEARNED D.R. on the other hand submitted that Tribunal need not go into any aspect other than penalty under Section 11AC of Central Excise Act, 1944 and what is required is to restore penalty to the extent of 100%.