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2014 (7) TMI 733 - AT - Central ExcisePenalty u/s 11AC and 11AB - Held that:- Commissioner (Appeals) set aside the demand of interest and penalty on the ground that the respondent paid the duty before issue of the show-cause notice. The Supreme Court in the case of Union of India Vs Rajasthan Spinning and Weaving Mills reported in [2009 (5) TMI 15 - SUPREME COURT OF INDIA] held that penalty under Section 11AC of the Act cannot be set aside merely on the ground that duty was paid before issue of the show-cause notice. On perusal of the impugned order, I find that the main contention of the respondent was that they have paid the duty before the issue of the show-cause notice and, therefore, penalty is not sustainable. It is seen that the respondent had not contested penalty and interest on merit. As the respondent had not contested penalty and interest on merit and in view of the decision of the Hon'ble Supreme Court, the imposition of penalty and demand of interest is sustainable. - Decided in favour of Revenue.
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