https://www.taxtmi.com/caselaws?id=117094 Duty paid before the show cause notice defeats the statutory basis for mandatory penalty under Section 11AC, and the penalty was therefore not leviable on that footing. In job-work arrangements, scrap generated at the job workers' premises must be cleared on duty or returned within the Rule 57F framework; where the assessee produced no convincing proof of lawful payment or return, the duty demand was sustained. A scrap demand concerning M/s. Tejaswi Engineering Components Pvt. Ltd. required fresh factual verification and was remanded, while the penalty under Rule 173Q was upheld for non-compliance with the prescribed procedure. en-us Fri, 02 Sep 2005 00:00:00 +0530 Wed, 20 Jun 2012 13:05:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117094 Duty paid before the show cause notice defeats the statutory basis for mandatory penalty under Section 11AC, and the penalty was therefore not leviable on that footing. In job-work arrangements, scrap generated at the job workers' premises must be cleared on duty or returned within the Rule 57F framework; where the assessee produced no convincing proof of lawful payment or return, the duty demand was sustained. A scrap demand concerning M/s. Tejaswi Engineering Components Pvt. Ltd. required fresh factual verification and was remanded, while the penalty under Rule 173Q was upheld for non-compliance with the prescribed procedure. Case-Laws Central Excise Fri, 02 Sep 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117094