COMMISSIONER OF CENTRAL EXCISE Vs. GOWARDHAN KNITTING WORKS

JUDGEMENT

(1.) This appeal has been preferred by the revenue under Section 35G of the Central Excise Act, 1944 (in short "the Act") against order dated 17-9-2008 passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as "the Tribunal") proposing to raise the following substantial questions of law:

(2.) The Assessee is engaged in manufacture of shawls etc. On visit by the preventive staff of the Department to the factory of the Assessee, clandestine removal of goods was noticed. A show cause notice dated 9-1-2004 was issued to the Assessee and after adjudication, payment of duty was confirmed and penalty was imposed. Demand of duty was upheld but penalty was reduced by the appellate authority. On further appeal, the Tribunal held that penalty payable was 25% under proviso to Section 11AC of the Act as the duty was paid even before the show cause notice itself and if the duty was paid within 30 days of the order raising demand, penalty to be imposed would be 25%.

(3.) We have heard learned Counsel for the parties.