https://www.taxtmi.com/caselaws?id=3286 Penalty under central excise law was held unsustainable where duty and interest had been paid before issuance of the show cause notice and the record did not support diversion of goods to the open market. The goods were cleared against valid CT-3 certificates, whose genuineness was not disputed, and there was no reliable evidence of deliberate evasion. In these circumstances, the precondition for penal action was not satisfied, following the principle that penalty is not sustainable when duty is paid prior to notice. The penalty order was set aside and the appeals were allowed. en-us Tue, 18 Sep 2007 00:00:00 +0530 Wed, 16 Apr 2008 17:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3286 Penalty under central excise law was held unsustainable where duty and interest had been paid before issuance of the show cause notice and the record did not support diversion of goods to the open market. The goods were cleared against valid CT-3 certificates, whose genuineness was not disputed, and there was no reliable evidence of deliberate evasion. In these circumstances, the precondition for penal action was not satisfied, following the principle that penalty is not sustainable when duty is paid prior to notice. The penalty order was set aside and the appeals were allowed. Case-Laws Central Excise Tue, 18 Sep 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3286