2006 (9) TMI 186

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..... red by the revenue proposing following question of law :- "Whether penalty under Section 11AC is liable to be imposed on the assessee and interest under Section 11AB can be levied in those cases which fall under the purview of explanation to sub-section (2B) of Section 11A of the Central Excise Act, 1944, where duty has been deposited before issue of Show Cause Notice?" 2. Case of the revenue is .....

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..... penalty of Rs. 1,30,301/-. The Commissioner (Appeals) upheld the view of the adjudicating authority. The Tribunal set aside the penalty holding that duty having been paid prior to issuance of show cause notice, imposition of penalty was not justified. 3. We have heard learned Counsel for the revenue. 4. It is well-settled that penalty under Section 11AC of the Central Excise Act, 1944 (for short .....

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..... 1970 SC 253, wherein, it was held that element of mens rea is normally required to be shown for imposition of penalty. Same view was taken in the Commissioner of Income-tax, West Bengal v. Anwar Ali, AIR 1970 SC 1782. View taken by the Tribunal, in the circumstances, cannot be held to be illegal or perverse. No substantial question of law arises. The appeal is dismissed.
Case laws, Decisions .....

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