2018 (5) TMI 1207 - HC - Central Excise

Whether the Hon ble Tribunal was justified in sustaining the order of imposition of penalty when the duty demand does not survive as the same stands deposited much prior to the issuance of the show cause notice? Held that - The reduction of penalty even to rupees one lac is not justified as it is a matter of record that the excise duties have been paid along with interest even before issuance of show-cause notice for the penalty. Even the bare minimum penalty was not justified - decided in favor of assessee.

Summary

The High Court of Allahabad allowed the appeal filed by the assessee under Section 35-G of the Central Excise Act, 1944 against an order passed by the Tribunal. The court held that the imposition of penalty was not justified as the excise duties had been paid before the issuance of the show cause notice. The appeal was allowed in favor of the assessee.