2003 (5) TMI 131 - AT - Central Excise

Summary

Issues involved: Appeal against imposition of penalty under Section 11AC and demands under Section 11A of the Central Excise Act, 1944.

Summary:
The appeal was directed against the Order-in-Appeal confirming penalty under Section 11AC and demands under Section 11A of the Central Excise Act, 1944. The appellants had voluntarily paid the duty before the show cause notice was issued. The advocate argued that in such cases, penalty under Section 11AC or Rule 173Q of the Central Excise Rules, and interest under Section 11AB should not be levied. The advocate cited precedents, including a judgment by the Bench in Dynamatic Technologies Ltd. v. CCE, Chennai, which supported the appellants' position. The Tribunal noted that it is a settled legal position that no penalty under Section 11AC or Rule 173Q, and no interest under Section 11AB can be levied if duty is paid voluntarily before the show cause notice. Consequently, the order imposing penalty and interest was set aside, but the appeal was rejected in other respects.