Pre-show-cause duty payment bars penalty; remand was limited to interest, which was not in issue.

Penalty was not exigible where the assessee paid the duty before issuance of the show cause notice, and the revenue's challenge on that ground failed. The High Court had already upheld the finding that no penalty was leviable, leaving the remanded proceedings confined to interest for the delayed period. As the appeal grounds did not include the interest question and it was not before the Tribunal for fresh adjudication, no further action was taken on that aspect.

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Issues: Whether penalty was leviable where the assessee had paid the duty before issuance of the show cause notice.

Analysis: The earlier final order holding that no penalty was leviable was upheld on the penalty question by the High Court, which answered that issue against the revenue. The matter before the Tribunal, after remand, was confined to the question of interest for the delayed period. Since the grounds of appeal did not include the interest issue and it was not before the Tribunal for fresh adjudication, no further action was called for on that aspect.

Conclusion: Penalty was not leviable in the circumstances, and the revenue's challenge failed.

Ratio Decidendi: Where duty is paid before the issuance of the show cause notice, penalty is not exigible on that ground.

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