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2007 (3) TMI 519 - AT - Central ExcisePenalty and interest - State Government undertaking - entire duty deposited, even before the issuance of the show cause notice - HELD THAT:- Admittedly, appellant is a local authority constituted under Mumbai Municipal Corporation Act, 1988, and as such it a “State” under Article 12 of the Constitution of India. As such, there could be no motive on their part to evade duty with an intention to defraud the Government. Further as contended by them, there could be a reasonable belief on their part to interpret the view that being a “State” and manufacturing goods for their own captive consumption, no duty is required to be paid by them, though the Commissioner in his impugned order has observed that the appellant was a declarant and was paying duty for some period in between. Nevertheless, no mala fide can be attributed to the appellant. It is further seen that the appellant deposited the entire amount of duty even before the issuance of the show cause notice. It is well-settled law that in case of conflict between two High Courts, the view of the High Court having jurisdiction over the assessee has to be applied. Thus, we are of the view that imposition of penalty and confirmation of interest against the appellant is not warranted. The same is accordingly set aside the appeal is allowed.
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