https://www.taxtmi.com/caselaws?id=243123 Payment of duty before issuance of a show cause notice does not by itself extinguish liability for penalty, and it does not avoid interest on belatedly paid duty because interest is compensatory. Penalty under Section 11AC of the Central Excise Act applies only where the non-levy, short-levy, short-payment, or erroneous refund is specifically linked to fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty. In the absence of such specific allegations and findings, penalty cannot be imposed mechanically, though interest remains payable on delayed duty. en-us Fri, 03 Jan 2014 00:00:00 +0530 Tue, 02 Sep 2014 17:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=243123 Payment of duty before issuance of a show cause notice does not by itself extinguish liability for penalty, and it does not avoid interest on belatedly paid duty because interest is compensatory. Penalty under Section 11AC of the Central Excise Act applies only where the non-levy, short-levy, short-payment, or erroneous refund is specifically linked to fraud, collusion, wilful misstatement, suppression of facts, or contravention with intent to evade duty. In the absence of such specific allegations and findings, penalty cannot be imposed mechanically, though interest remains payable on delayed duty. Case-Laws Central Excise Fri, 03 Jan 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=243123