COMMISSIONER OF CENTRAL EXCISE Vs. RUCHIRA PAPERS LTD.

JUDGEMENT

(1.) THIS appeal has been admitted on the following substantial question of law:

(2.) AT the outset we may state that in CEA No. 9 of 2006 titled Commissioner of Central Excise, Chandigarh v. Him Chemicals and Fertilizers Ltd. the identical question of law was involved and we had decided the case in favour of the revenue. This Court on a conjoint reading of Section 11AC of the Act held that penalty can be imposed even if the excise duty is deposited at the threshold before the issuance of show cause notice.

(3.) A show cause notice was issued by the Assessing Authority and penalty i.e. Rs. 46,473/ - was levied under Section 11AC. The assessee filed an appeal and the appeal was allowed only on the ground that since the assessee had deposited the amount before the issuance of the show cause notice no penalty could have been imposed. The Tribunal also dismissed the appeal of the Revenue on the same ground.