2006 (2) TMI 446

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.... for the Respondent. [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 du....

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....otice. According to learned SDR, the question should be answered in the 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....

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.... cited before me, I find that the issue raised in this case needs to be answered in the negative. In the case of Rashtriya Ispat Nigam Ltd. v. CCE, Visakhapatnam (supra), it was held by a regular bench of this Tribunal that, where duty had been deposited before the issue of show cause notice, no penalty was imposable on the assessee under Section 11AC of the Act. The appeal filed against the Tribu....

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....duty by the party, such payment was not voluntary and, therefore, the penal provisions of Section 11AC stood attracted. It appears that similar circumstances were considered by the Bombay High Court in the case of CCE v. Gaurav Mercantiles Ltd. (supra) and it was still held that no penalty under Section 11AC was imposable where duty had been paid prior to issue of show-cause notice. 4. In ....