9911796707
TMI Blog2008 (7) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... e, penalty and interest is upheld - E/984/2005 - 700/2008 - Dated:- 11-7-2008 - Shri P. Karthikeyan, Member (T) Shri R. Balagopal, Consultant, for the Appellant. Dr. Nitish Birdi, SDR, for the Respondent. [Order]. - The appellants M/s. Sivasakthi Textiles cleared its finished goods 'grey cotton fabrics' without payment of duty and without following the central excise formalities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. 2. In the grounds of appeal, the penalty imposed and the interest demanded are sought to be vacated on the ground that in a line of decisions, the Tribunal, the Apex Court and the Karnataka High Court have decided that when the duty evaded was paid before issue of show cause notice, no penalty or interest was liable to be paid. As regards the fine imposed, it is argued that the seizure was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of which held that the payment of duty liability in cases of clandestine clearance of finished goods prior to issue of SCN did not absolve the assessee from the liability to penalty and interest. Their lordships had distinguished the ratio of Rashtriya Ispat Nigam Ltd. v. CCE, Visakhapatnam reported in 2003 (161) E.L.T. 285 (Tri.-Bang.) in the cases cited by the appellants on the basis that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, the circumstances surrounding the seizure of the goods from the factory supported the conclusion of the lower authorities that the seized goods were kept with the intention of clearing them without payment of duty. In any case, the finished goods were not accounted in the records. This involved contravention of the statutory provisions. Therefore, the confiscation of the entire seized goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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