1989 (10) TMI 154

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....ice issued to them alleged violations by them of Rules 9(1), 173C, 173F, 173G(1) and 57A. The drawing up of the proceedings resulted as they cleared 99 pieces Expansion Valves without payment of Central Excise duty amounting to Rs. 33,660/- leviable thereon by wilful misuse of the benefit of Government of India Notification No. 75/87 dated 1-3-1987. 2. It is common ground between the two sides that the appellants cleared the goods in question in April, '87 availing of full exemption in duty. On 18-8-1987, the value of all excisable goods cleared by them in the year starting from 1-4-1987 exceeded Rs. 40 lakhs whereby they became ineligible for the benefit of complete exemption from duty available under the said Notification. Duty became pa....

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....stan Steel Ltd. v. State of Orissa - [1978 (2) E.L.T. J 159 (S.C.)]. When the offence is only of technical nature, penalty can be justifiably reduced, they added [1988 (38) E.L.T. 686 Cegat, WRB]. 4. When the appeal was argued before us, Shri S.R. Chatterjee, learned Consultant appearing for the appellants contended that there has been no offence committed by them. They filed a proper classification list for the goods covered by the exemption notification and they cleared the goods on nil duty Gate Passes. Subsequently, their value of the clearances of all excisable goods exceeded Rs. 40,00,000/- (Rupees forty lakhs) on 18-8-1987. They then filed a revised classification list which was received by the department on 21-10-1987 wherein they ....

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....only the subsequent development of total value of clearances exceeding Rs. 40 lakhs that made them lose the benefit of exemption including the clearances already effected. Here also they themselves filed the declaration in revised classification list and paid up the amount. The delay was not deliberate or mala fide. The show cause notice itself had been issued subject to their declaration and payment of duty. He submitted that for delayed payment of duty, which is also not deliberate there is no provision for imposition of penalty. He prayed for the acceptance of the appeal and quashing of the orders of the lower authorities. 7. We have considered the submissions made. We are satisfied that there is no mala fide intention or any attempt to....