MACHINO MONTELL (I) LTD. Vs. CCE

JUDGEMENT

(1.) ON the basis of a difference between entries (relating to clearance of goods) in Balance Sheets and those in RG -1, noted by officers of Central Excise, the department came to the conclusion that the respondent has clandestinely removed excisable goods without payment of duty during the financial years 1996 -97 to 1998 -99. Accordingly, they issued a show -cause notice to the party. But before that, the party had paid up the entire amount of duty leviable on the differential value of goods. The show -cause notice was mainly aimed at penalising the party under Section 11AC read with Rule 173Q. The notice also proposed to levy interest on the duty amount under Section 11ABG.The original authority imposed a penalty of Rs. 1.13 lakhs on the party under Section 11Ac and also demanded Rs. 56,927.28 towards interest on the above duty under Section 11ABG. The appeal preferred by the aggrieved party against the decision of that authority was allowed by the Commissioner (Appeals). Hence the present appeal of the Revenue.

(2.) LD . SDR, supported by the following decisions of the Tribunal, argues that, even where duty is deposited by the assessee before issuance of show -cause notice, penalty is leviable under Section 11AC on the basis of findings of fraud, suppression of facts, mis -statement of facts, etc., against them : -

(3.) LD . Advocate for the respondent cites contra decision on the point by co -ordinate benches as under : -