2014 (9) TMI 841

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....e  Appellant. Shri J.N. Somaiya, Advocate, for the Respondent. ORDER The Revenue is in appeal against the impugned order dropping the penalty and interest against the respondent by the learned Commissioner (Appeals) on the ground that as duty has been paid before issuance of show cause notice, therefore interest and penalty are not leviable. 2. The brief facts of the case are....

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....ting the provisions of Sections 11AC and 11AB of the Act. The Commissioner (Appeals) dropped the demand of interest and penalty. Aggrieved by the said order, the Revenue is before me. 3. The learned AR submits that as the respondent has admitted their liability and during the course of investigation, shortages of inputs were found and the goods were cleared by them without payment of duty,....

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....the end of the month. It is further submitted that during the period April, 2004 to September, 2004, the respondent had purchased more than 11,000 MT of MS ingots and there was a shortage of only 29.73 MT which is a negligible quantity and that may occur due to the weighment on various weighment machines and without going in the dispute, the respondent has paid the duty on these shortages. Therefo....

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....able, but the Hon'ble Supreme Court in the case of UOI v. Rajasthan Spinning and Weaving Mills reported in 2009 (238) E.L.T. 3 (S.C.) held that if the ingredients of Section 11AC of the Act are invoked, mandatory penalty is leviable. Therefore, in the facts and circumstances of the case, I have to look whether the provisions of Section 11AC can be invoked in the present case or not. Admittedly, in....