Pre-notice duty payment bars penalty and interest where there is no suppression, following settled precedent.

Where duty liability is discharged before issuance of the show cause notice and no suppression is alleged, penalty and interest are not leviable. The Tribunal followed earlier precedent, including Apex Court affirmation, to hold that prior reversal and deposit of the disputed duty removed the basis for penal and interest demands. The Revenue's challenge to the order setting aside penalty therefore failed, and the relief against penalty and interest was upheld.

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Issues: Whether penalty and interest were leviable when the duty amount had been paid before issuance of the show cause notice.

Analysis: The duty in dispute had been reversed and deposited before the show cause notice was issued. The Tribunal relied on earlier decisions holding that when duty is paid prior to notice, and there is no allegation of suppression, penalty and interest are not attracted. The Tribunal also noted that the issue had been settled by earlier precedent and affirmed by the Apex Court.

Conclusion: Penalty and interest were not leviable. The Revenue's challenge to the order setting aside penalty failed.

Ratio Decidendi: Where the duty liability is discharged before issuance of the show cause notice and the case does not involve suppression, penalty and interest are not imposable.

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