TMI Blog2009 (5) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... alore, providing services like renting of rooms and restaurant service, and having a bakery and are the manufacturer of various excisable goods like confectionary, cakes, bakery products etc, falling under various chapter headings of Central Excise Tariff Act, 1985 and were availing the small scale exemption provided from time to time under various notifications issued under the Central Excise Act, 1944, as their turnover of all excisable goods was within the exemption limit up to 31-3-2003. The small scale exemption Notification No. 78/2003-C.E., dated 1-3-2003 was amended vide notification No 30/2003-C.E., dated 1-4-2003 brought a major change in the computation of aggregate value, the value of all excisable goods is brought in its ambit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oral and written submissions came to the conclusion that appellant has suppressed the value of their clearances from the department and hence, liable for penalty under the provisions of Section 11AC of the C.E. Act, 1945. He also held that the amount paid by the appellant i.e. the entire duty and the interest thereof was not voluntary payment but only a case of payment on the commencement of investigation by the department. 4. Learned counsel appearing on behalf of the appellants submits that the appellant was in correspondence with the revenue from 1997 onwards. It is his submission that as early as 15th April 1998 they had given the information sought by the department. It is his submission that the entire issue was in the knowledge of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was replied by the appellant vide his letter dated 11-8-1997. The appellant in their letter dated 11-8-97 also sought advice from the Superintendent Central Excise whether central excise provisions are applicable to them or not. Concurrently the appellants also took up the matter with their Federation i.e. The Federation of Hotel and Restaurant Association of India as regards the requirement of taking the registration and applicability of Central Excise provisions. On 27-3-98, the Superintendent of Central Excise sought for the following information from the appellants. (1) List of units under their Board of Directors (2) Total turnover on the above confectionary products during the year 96-97, 97-98 of their unit and other uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en from the above correspondence that the department was aware that the appellant was manufacturing bakery and confectionary products right from 98 onwards. We also find that the appellant has been seeking advice of the authorities as regards the provisions to be followed. We do not find anything on records to indicate that the department/revenue had informed the appellants of the procedures to be followed. We find that in this case, the appellant has discharged the entire duty liability before the issuance of show cause notice and are not disputing the same. We find that the provisions of Section 11AC for the imposition of penalty on the appellant will not arise in this case as there is no intention to evade duty and there is also no sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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