2007 (9) TMI 22 - HC - Central Excise

Revenue claimed against the Tribunal decision i.e. penalty and interest can be waived on the ground that duty deposited prior to the issuance of SCN - Held that revenue claimed not sustained

Summary

The High Court of Punjab and Haryana dismissed the appeal by the appellant-revenue under Section 35G of the Central Excise Act, challenging the order passed by the Tribunal. The court held that penalty and interest cannot be waived solely because duty was deposited before the show cause notice. Mens rea is essential for invoking penal provisions under Rule 25 of the Central Excise Rules, 2002. The appeal was dismissed based on previous judgments favoring the assessee.