2007 (7) TMI 183

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....ter, officers of the department on visit to the premises of respondent - assessee on 7.9.2001 and after verification of the record and stock, arrived at a conclusion that assessee had short paid duty of Rs.1,51,143/-. Show cause notice dated 26.2.2002 was issued. However, immediately after detection on 7.9.2001, the assessee had reversed the CENVAT credit accordingly claimed and had also paid the duty by 25.9.2001 and informed the officers of the department accordingly. 4. Joint Commissioner, Central Excise & Customs, Aurangabad, confirmed the notice so far as demand of short paid duty of Rs.1,51,143/- and also interest chargeable u/s 11AB of the Act. However, he discharged the notice so far as imposition of penalty u/s 11AC of the Act. ....

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....rein. Once a case is covered by the situation mentioned in the Section, mere deposit prior to issuance of show cause notice under Section 11A of the Act will not necessarily negate the situation mentioned in the said Section. 9. In view of the above, applicability of Section 11AC is not excluded at the threshold merely on deposit of the amount after having been caught and before the issue of show cause notice." 6. Learned Assistant Solicitor General placed reliance upon the observations and claimed that since the show cause notice alleged suppression of material facts from the knowledge of Central Excise Department by virtue of Explanation (1) to sub-section 2-B of Section 11A, it is not open for the assessee to claim benefit of sub-s....

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.... (2005 (67) RLT 157 (Mad) and Karnataka High Court in the case of Commissioner of Central Excise, Mangalore V/s Shree Krishna Pipe Industries (2004 (165) ELT 508 and also the decision in the matter of Rashtriya Ispat Nigam Ltd., took the view that no substantial question of law was involved in the case as the short duty was paid before issuance of show cause notice. 7. Inspite of vehement submission by learned Assistant Solicitor General, in the light of divergence of the views, judicial discipline requires that we follow the view taken by Bombay High Court. 8. As a second line of submission, learned ASG Shri Alok Sharma submitted that in the matters relied upon by learned amicus curiae for respondent, there is no reference as to whet....