2007 (7) TMI 184

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....e parties. 2. The Department has approached this court in an appeal under section 35G of the Central Excise Act, 1944 which was admitted by us on substantial question of law. "Whether there is any discretion under Section 11-AC to award penalty lesser than evaded duty or to exempt the penalty ?" 3. A show-cause notice was issued to the respondent - Assessee, dated 10-05-2002. Hearing culm....

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....bunal (hereinafter referred to as "CESTAT", for brevity), Mumbai, vide decision dated 02-08-2006. It appears that the order imposing penalty under section 11-AC is set aside by the CESTAT, because the deposit of the duty was before issuance of show-cause notice. 4. In the light of the view taken by us in the decision in First Appeal No. 72/2007, decided on 11-07-2007 and First Appeal No. 240/20....

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....onal and effected by use of fraud, collusion, willful mis-statement or suppression of material facts, is not at all fulfilled in the present case, and therefore, the order quashing the penalty calls for no interference. For the purpose of supporting his contention, he has taken us to contents in the Order in Original passed by the Joint Commissioner of Central Excise & Customs, which read thus :- ....