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TMI Blog2011 (5) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... AC of the Central Excise Act. There is no representation for the respondent despite notice, nor any request for adjournment. I have examined the records and heard the learned SDR. 2. In adjudication of a show-cause notice, the original authority had confirmed demand of duty of Rs.1,68,387/- by way of denial of CENVAT credit, against the assessee under Section 11A(1) of the Central Excise A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee under Section 11AC of the Act was not sustainable. The present appeal of the Revenue relies on a plethora of decisions and prays for imposition of penalty equal to duty on the respondent under Section 11AC. The learned SDR submits that the question whether penalty under Section 11AC of the Act is avoidable on the ground that the duty was paid prior to issue of show-cause notice is no longer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue of the show-cause notice would have the effect of erasing this penal liability. It is precisely this question which stands settled by the Hon'ble Supreme Court in the case of Rajasthan Spinning & Weaving Mills (supra), para 2 whereof is reproduced below:- "2.?What are the conditions and the circumstances that would attract the imposition of penalty under Section 11AC of the Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... misconceived as the interpretation of Dharamendra Textile is misconstrued by the Revenue. We completely fail to see how payment of the differential duty, whether before or after the show cause notice is issued, can alter the liability for penalty, the conditions for which are clearly spelled out in Section 11AC of the Act." Respectfully following the above ruling of the apex court, I hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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