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2018 (11) TMI 898 - AT - Central ExciseImposition of penalty - demand of interest - appellant had deposited the entire duty even before the issuance of SCN - no malafide intent - Held that:- The appellant was a state corporation and was manufacturing various items for their own captive use. As the said goods were being consumed by them captively and were not being sold, there could be a bonafide belief on their part that the same would not attract duty of excise. The revenue has also not produced any evidence to show that the said non-payment of duty was with a malafide intention - imposition of penalty on the appellant is neither justified nor warranted. Demand of Interest - Held that:- Hon’ble Supreme Court in the case of Rajasthan Spinning & Weaving Mills [2009 (5) TMI 15 - SUPREME COURT OF INDIA], has held that interest is payable even when duty is paid before issuance of the show-cause notice - the appellant is under legal obligation to pay the interest in respect of differential duty from the date when the same became payable till the date it was paid - demand of interest upheld. Appeal allowed in part.
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