TMI Blog1998 (3) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case are as follows : 1.1 Central Excise Officers, acting on an information, on the basis of scrutiny of private records seized from the appellants premises on 17-4-1996, found that 499.019 M.Ts. of twisted M.S. rods were manufactured and removed clandestinely without payment of duty. Duty evaded during the period February 1995 to April 1996, was alleged at Rs. 7,93,444.00. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission of offence i.e. February 1995 to April 1996, sub-section 11AB (for recovery of interest) and 11AC (for mandatory imposition of penalty equivalent to 100% of duty evaded) were not in existence. The said provisions could not, therefore, be invoked. They also stated that the private books, on which the clandestine manufacture and removal has been based, were of the previous management. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her submits that the letter dated 29-4-1997, written by the appellants, clearly shows that the investigating officers got this letter written with an assurance that no further action would be taken, if the duty involved was paid. On this assurance, appellants have paid the duty but the Revenue has not fulfilled its part of assurance. Had that not been the position, no assessee would have surrender ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said Section. 5.2 Consequently, penalty of Rs. 7,93,444.00 imposed under Section 11AC and recovery of interest under Section 11AB, under the impugned order are set aside. 5.3 Question would, however, remain whether the appellants would be liable to penalty under Rule 173Q. The adjudicating authority has not at all discussed the pleas regarding the previous management and the present management ..... X X X X Extracts X X X X X X X X Extracts X X X X
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