2007 (2) TMI 554

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....hri T.C. Nair, Consultant, for the Respondent. [Order]. -  I have heard both sides on the appeal against the order of the Commissioner of Central Excise (Appeals) who has accepted the assessees/respondents' contention that since they paid the demand and interest before issue of show cause notice, penalty under the provisions of Section 11AC cannot be imposed, relying upon the Larger Ben....

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.... show cause notice. 3. Learned DR draws my attention to the decision of the Hon'ble Madhya Pradesh High Court reported in 2006 (203) E.L.T. 15 (M.P.) in the case of Sai Machine Tools Pvt. Ltd. v. CCE, Indore which has hold that the provisions of Section 11AC are attracted even when duty has been paid prior to the issue of show cause notice. The High Court has distinguished the Bombay High ....