2001 (2) TMI 184

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....pellant is a well known manufacturer inter alia of foot wear, it also manufactures 'Micro Cellular Rubber' (also referred as Micro Sheets) covered under sub-heading 4008.11 of Central Excise Tariff which were used in manufacture of soles for foot wear and were fully exempt from duty vide Notification No. 319/86-C.E., dated 22-5-1986 as amended during the period of dispute. 2. In or about Novemb....

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....73B and imposed a penalty of Rs. 5,000/- under Rule 173Q. The learned Commissioner (Appeals) relying on 1989 (42) E.L.T. 350 (S.C.) reduced the penalty from Rs. 5000/- to Rs. 2,500/- holding the imposition of penalty to be called for and correct as arrived at by the learned Assistant Collector. Hence this appeal. 3. We have heard the learned Chartered Accountant for the appellants and the SDR f....

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....was to emphasise the fact of loss of Revenue and to provide a remedy for such loss and concluded that mens-rea must be proved herein, Section 271(1)(a) required no mens-rea. Rule 173Q(1), sub clauses (a), (b) & (c) liability does not depend upon mens-rea and this violation in the present case falls under 173Q(1)(a), thus mens-rea may not be called for. However, there is. admittedly, no Revenue los....