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2015 (11) TMI 773 - CESTAT BANGALORELevy of penalty - Denial of exemption claim - duty demand u/s 11A - SSI Exemption - Notification No.8/2003 dt. 01/03/2003 - Held that:- Revenue has not challenged the reasoning advanced by Commissioner(Appeals) and has not rebutted the said findings. The appellate authority has set aside the penalty on the respondent on the ground that as per their letter dt. 10/01/2007, it was the respondent himself who disclosed all the facts and subsequently deposited the duty. As per the order of the appellate authority, Revenue has not placed any evidence on record to indicate that it was as a result of investigations that the assessee’s lapse came on record. In the present appeal also, the Revenue has not referred to any evidence to show such an action on the part of the Revenue. The assessee having deposited the entire duty along with interest prior to the issuance of the show-cause notice, cannot be said to have not paid the said duty by way of any malafide intention. In fact in such a scenario, the provisions of Section 11(2) provide that no show-cause notice should be issued to the assessee. As such, I find no infirmity in the view of the Commissioner(Appeals). - there was no malafide intention on the part of the assessee inasmuch as the assessee has himself detected the mistake and has deposited the differential duty along with interest much before the issuance of the show-cause notice, the imposition of penalty of ₹ 10,000/- in terms of the provisions of Rule 25 of Central Excise Rules, which stands upheld by the Commissioner(Appeals) is not justified. - Decided in favour of assessee.
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