TMI Blog2011 (1) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... back to the adjudicating authority for the purpose of quantification of interest on short payment of duty paid by the respondent during the period 11th May, 2001 to June 01, after following the principle of natural justice. - E/2008/03 Mum - - - Dated:- 13-1-2011 - Shri. Ashok Jindal, Shri. P.R. Chandrasekharan, JJ. Appearance Shri S.M. Vaidya, JDR for appellant Shri Bharat Raichandani, Advocate For Respondent Per Ashok Jindal The Revenue is in appeal against the impugned order dropping the interest under Section 11AB and penalty under Section 11AC as well as erstwhile Rule 173Q of the Central Excise Rules, 1944. 2. The facts of the case are that a search was conducted by a Preventive Team at the factor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Act and Rules and the demand of interest is to be confirmed. With regard to the interest, he relied on the decision in the case of CCE, Pune vs. SKF India Ltd. 2009 (93) RLT 237 (SC). 4. On the other hand, the learned Advocate for the respondent appeared and submitted that in the entire show-cause notice there is no allegation of suppression of facts or non-payment of duty with an act of fraud, collusion, willful mis-statement or contravention of provisions with intent to evade payment of duty. In the absence of above said ingredients, no penalty under law is leviable on the respondent. He also relied on the decision in the case of Union of India vs. Rajasthan Spinning Weaving Mills 2009 (238) ELT 3 (S.C.). He further s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x court in the case of Rajasthan Spinning Weaving Mills (supra) has clearly spelt out that in the absence of any ingredients of Section 11 AC, no penalty can be imposed on the assessee. In this case also without alleging anything against the respondent, no penalty is leviable. As the learned Advocate submitted that they have made clearance to their sister unit for further processing of the goods, if any short duty has been paid that exercise only a Revenue neutral. In fact, we do agree with the contention of the Hon ble apex court in the case of SKF India Ltd. (supra) as payment of duty liability arises when the goods are cleared from the factory by the assessee and in that case supplementary invoices has been issued later on so the short ..... X X X X Extracts X X X X X X X X Extracts X X X X
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