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TMI Blog2003 (12) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... r per : Justice K.K. Usha, President]. Challenge in this appeal at the instance of the assessee is against the imposition of penalty under Rule 173Q of the Central Excise Rules for the reason of interest loss suffered by the Revenue on account of delayed payment of duty. Original authority had imposed a penalty of Rs. 3,00,000 which was reduced to Rs. 1,00,000 by the Commissioner (Appeals). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out that caustic soda cleared to the sodium cyanide plant should be assessed at the highest price charged to customers on factory gate sale. Appellant immediately debited differential amount of duty. The total differential duty thus paid for the period from April, 1994 to August, 1996 came to Rs. 27,68,566. Thereafter show cause notice dated 21-6-96 was issued proposing to initiate action ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollector of Central Excise, Tuticorin - 1996 (88) E.L.T. 31. 4. It was submitted that the entire amount paid as differential duty had been taken as Modvat credit by sodium cyanide plant. Under these circumstances there could not have been any intention on the part of the assessee to evade the duty. Appellant placed reliance on the decision of this Tribunal in G.K. Steels (CBE) Ltd. v. CCE, Coimb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is nothing to show that the assessee was valuing caustic soda on cost of production basis with an intention to evade duty. Apart from the fact that the appellant immediately paid the differential duty it is seen that it could take credit of the equivalent amount in its sodium cyanide plant. Under these circumstances the appellant cannot be found guilty of entertaining an intention to evade duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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