2004 (1) TMI 82

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....red to register themselves under the Central Excise Act, 1944 ('Act' for short) nor liable to pay Central Excise Duty. The Central Excise Officers visited the unit of the respondent on 5-2-1999 and found that as on that day, respondent's unit had cleared goods of the value of Rs. 65,09,461/-. Hence, a show cause notice was issued calling upon the respondent to show cause why (1) duty of Rs. 75,474/- on the value of clearances made in excess of the exemption limit of Rs. 50 lakhs should not be demanded; (2) why interest at 20% should not be demanded on the duty due up to the date of payment of duty; (3) why penalty under Section 11AC of the Act equal to the duty amount proposed to be demanded and recovered should not be imposed; ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e (Appeals), Bangalore. 2. Smt. Vijaya Prakash, learned Advocate appearing for the appellants submitted that the issue relates to imposition of penalty under Section 11AC & under Rule 173Q, apart from demand of interest in terms of Section 11AB of the Central Excise Act, 1944. She submitted that since the disputed duty amount has already been deposited by the party even before the issue of show cause notice, imposition of penalty is not justified. In support of her contention, she referred to the decision of the Tribunal in the case of Rashtriya Ispat Nigam Ltd. v. CCE, Visakhapatnam, reported in 2003 (161) E.L.T. 285 (Tribunal) = 2003 (54) RLT 317 (CEGAT - Ban.). 3. Taking into consideration of the facts and circumstances....