https://www.taxtmi.com/caselaws?id=109533 Penalty under Rule 173Q(1)(a) of the Central Excise Rules may still be attracted even where duty and interest are paid before issue of the show cause notice, because such payment does not automatically exclude liability in every case. The document stresses that the nature of the violation, together with the assessee's facts and conduct, must be examined to decide whether penalty is sustainable and to what extent. On the stated facts, the penalty was upheld in principle for erroneous clearance of duty-paid goods after shifting from the Section 3A regime, but the quantum was reduced as excessive. en-us Fri, 06 Jun 2003 00:00:00 +0530 Tue, 10 Apr 2012 16:37:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109533 Penalty under Rule 173Q(1)(a) of the Central Excise Rules may still be attracted even where duty and interest are paid before issue of the show cause notice, because such payment does not automatically exclude liability in every case. The document stresses that the nature of the violation, together with the assessee's facts and conduct, must be examined to decide whether penalty is sustainable and to what extent. On the stated facts, the penalty was upheld in principle for erroneous clearance of duty-paid goods after shifting from the Section 3A regime, but the quantum was reduced as excessive. Case-Laws Central Excise Fri, 06 Jun 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109533