2006 (2) TMI 446

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....ondent. [Order]. - The original authority, in adjudication of a show-cause notice demanded duty from the assessee and imposed on them the following penalties : (a) Rs. 38,400/- under Section 11AC of the CE Act, 1944. (b) Rs. 37,726/- under Rule 57-I read with Section 11 AC. The authority also ordered levy of interest on duty from the assessee under Section 11AB of the Act. The order was pass....

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....affirmative in view of the following decisions : (1) Zunjarrao Bhikaji Nagarkar v. UOI reported in 1999 (112) E.L.T. 772 (S.C.). (2) Sainsons Paper Industries Ltd. v. CCE, reported in 2003 (158) E.L.T. 782 (Tri.-Del.). (3) Surie-Engg. Works v. CCE, New Delhi reported in 2004 (167) E.L.T. 195 (Tri.-Del.) (4) CCE, Indore v. Sai Machine Tools Ltd. reported in 2004 (170) E.L.T. 100 (Tri.-Del.) Le....

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....e notice, no penalty was imposable on the assessee under Section 11AC of the Act. The appeal filed against the Tribunal's decision by the department was dismissed by the Hon'ble Apex Court vide 2004 (163) E.L.T. A53 (S.C.). Thus the general proposition of law that, where duty had been deposited prior to issuance of show-cause notice, there shall be no penalty on the assessee under Section 11AC sto....

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....enalty under Section 11AC was imposable where duty had been paid prior to issue of show-cause notice. 4. In the case of Zunjarrao Bhikaji Nagarkar v. UOI (supra), cited by the learned SDR, I have found nothing in the Apex Court's judgment to support the present appellant's plea. In the case of Surie Engg Works (supra), it was held that duty deposited by a party after being caught by the depa....