Dismissal of Appeal Under Section 35G: Duty Deposit Not Enough to Waive Penalty

The High Court of Punjab and Haryana dismissed the appeal by the appellant-revenue under Section 35G of the Central Excise Act, upholding that penalty and interest cannot be waived solely due to duty deposit before the show cause notice. Mens rea is crucial for invoking penal provisions under Rule 25 of the Central Excise Rules, 2002. The decision was based on precedents favoring the assessee.

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The High Court of Punjab and Haryana dismissed the appeal by the appellant-revenue under Section 35G of the Central Excise Act, challenging the order passed by the Tribunal. The court held that penalty and interest cannot be waived solely because duty was deposited before the show cause notice. Mens rea is essential for invoking penal provisions under Rule 25 of the Central Excise Rules, 2002. The appeal was dismissed based on previous judgments favoring the assessee.

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