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2014 (2) TMI 1190 - HC - Central ExciseValidity of Tribunal's order - Whether the CESTAT is right in dismissing the appeal and vacating the mandatory penalties imposed when there is a plethora of conflicting decision on the same issue by various higher appellate forums/authorities - Held that:- Respondent has to pay Central Excise Duty in the years 1994, 1995 and 1996, but they paid duty only on 5-11-1997. Even though, the respondent has paid duty on 5-11-1997 and that too prior to issuance of show cause notice, dated 7-9-1998, the respondent cannot absolve its liability from paying penalty under the Section mentioned - CESTAT without properly considering the said provision has simply found that since before the issuance of show cause notice the respondent has paid Central Excise Duty, it need not pay penalty. Since the said Section deals with short levy or short payment or erroneous refund and non-payment, this Court is of the view that the approach made by the CESTAT with regard to penalty is totally erroneous and therefore, the order passed by the CESTAT is liable to be set aside and the substantial question of law settled in the present Civil Miscellaneous Appeal is having substance. - Decided in favour of Revenue.
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