2006 (6) TMI 228

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....vocate, for the Respondent. [Order]. - In this appeal, the Revenue is aggrieved by dropping of Section 11AC penalty. In a show cause notice issued to the respondents, the Department had demanded duty on certain goods on the ground that those goods were not exempt from payment of duty. (The party had cleared the said goods without payment of duty, claiming the benefit of an exemption Notifica....

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....Accordingly, the appellant challenges the finding that no duty was determined under Section 11A(2). Learned JDR reiterates this challenge. Learned Counsel for the respondents seeks to justify the impugned order by submitting that Section 11AC is not applicable to the case as the proviso to Section 11A(1) was not invoked in the show cause notice. 3. After considering the submissions, I find....

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....1) of the Act. The role of the original authority was to find out as to whether the demand was sustainable and, if so, to what extent. There is no dispute regarding this aspect either. If it was within the domain of the original authority to determine the quantitative extent of the duty liability, if any, the function of was one of determination of duty under Section 11A(2). This is precisely what....