2007 (3) TMI 559

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....horawat, Advocate, for the Respondent. [Order]. -  Revenue came in appeal against the order dated 7-3-05 on the limited question whether the Respondent, who had availed Modvat credit reversed the same suo motu before issuance of show-cause notice, shall be exonerated from penalty when interest was paid by them. 2. Ld. DR for the Appellant-Revenue submitted that there is no doubt....

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....ey reversed the credit which was availed earlier. However, in between, one and half years had elapsed. For deprivation of the legitimate revenue for the short period to the Government, they suo motu paid interest on the duty amount. There was no mischief at all caused to Revenue knowingly nor any contumacious conduct of the Respondent was found by Revenue. He further submitted that after reversal ....

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....penalty having been imposed under Section 11AC of the Central Excise Act, 1944, elements of that Section were absent. When essential ingredients of quasi criminal proceedings are absent, nothing can be concluded against the conduct and character of the Respondent and it is not imputable to penalty proceedings. Records should demonstrate that the offender had all along ill-will/motive to avail Modv....