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2018 (6) TMI 996 - HC - Central ExcisePenalty - duty paid before issuance of SCN - Whether penalty was liable to be imposed on the assessee in case where duty had been deposited by the assessee before issue of show cause notice? - Held that:- Payment of duty before issuance of show cause notice however carries an important connotation of the assessee not contesting the liability. Mere depositing the amount does not amount to payment of duty. Payment of duty would arise when the liability is accepted. This would have an important element of avoiding litigation. In the present case, the assessee opposed the show cause notice proceedings all throughout upto the stage of Tribunal. Even before the Tribunal, the appeal was not confined to penalty but on the order passed by the Adjudicating Authority and confirmed by the Appellate Authority regarding confiscation of goods and confirmation of excise duty demand - This was thus, clearly not a case where the assessee had paid the duty even before issuance of show cause notice. The assessee therefore cannot claim waiver of penalty on this count - penalty upheld. Separate penalty on partners - Held that:- This Court in case of Jai Prakash Motwani, [2009 (1) TMI 501 - GUJARAT HIGH COURT] held that once penalty is imposed on the partnership firm, no separate penalty can be imposed on the partners - penalty on partners set aside. Appeal allowed in part.
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