2010 (3) TMI 501

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....- P.C. : Heard the learned counsel for the rival parties. 2. This appeal is directed against the order dated 25-7-2005 [2006 (197) E.L.T. 258 (Tri. - Mumbai)] passed by the Customs, Excise & Service Tax Appellate Tribunal, Mumbai. 3. This appeal was admitted by this Court vide order dated 11-4-2007 to consider the following question of law :- "Whether on the facts and in the circumstances....

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....l's decision in the case of Hemant Plastics & Chemicals Ltd., and also Net Plast Ltd., both cited in support, would be applicable. Therefore, penalty is not liable to be imposed. I also find that without establishing a mala fide intent to evade duty inter alia, by reasons of suppression of information or mis-information to the department or by reasons of fraud or collusion, Section 11AC is not app....

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....After hearing both sides, I do not find any justifiable reason to impose penalty upon the respondents, inasmuch as the duty was paid prior to the show cause notice and input on which the respondents had taken Modvat credit was still lying in their factory premises pending finalization of their insurance claim. In such a case no mala fide can be attributed to the respondents. Hence, no infirmity is....