2009 (4) TMI 107

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....ndent. [Order].- This is an appeal by the Revenue against Commissioner (Appeals) order dated 23-3-07 by which the Commissioner (Appeals) while upholding the duty against the Respondent, set aside the order of penalty imposed on them under Section 11AC of the Central Excise Act. The Appellant are a manufacturer of M.S. Strips and CRF Sections. Their factory was visited by the Jurisdictional Cent....

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....set aside the penalty imposed on the Respondent under Section 11AC on the ground that entire duty has been paid by the Respondent even prior to the issue of show cause notice. In this regard, the Commissioner (Appeals) relied upon- (a) Tribunal's judgment in the case of Machino Montell (I) Ltd. - 2004 (168) E.L.T. 466 (Tri.-LB), (b) Tribunal's judgment in the case of Rashtriya Ispat Nigam Lt....

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.... (P&H) = 2006 (4) S.T.R. 177 (P&H). He also emphasized that in this case, the Respondent had clearly admitted that the goods found short had been removed without payment of duty and thus admittedly, this is a case of clandestine removal, therefore, the Section 11AC would be attracted and just because the duty had been paid prior to the issue of show cause notice, the penalty under Section 11AC can....