2005 (5) TMI 476

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..... question arising in this case is whether any penalty was imposable on the appellants under Section 11AC of the Central Excise Act on the ground of wilful suppression, by them before the Department, of clearance of dutiable goods in the guise of non-dutiable goods, notwithstanding the fact that duty on such clearances was paid by them before issuance of show cause notice. Ld. Counsel submits that, .....

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..... ved. It was argued by the Revenue that, where excisable goods were fraudulently removed without payment of duty, the mere fact that duty was subsequently paid on the goods before the issuance of show cause notice by the Department did not stand in the way of Section 11AC being invoked for penalizing the party for their fraudulent act. This argument was rejected by the Larger Bench which held that, .....

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