TMI Blog2011 (4) TMI 1453X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. JUDGMENT This appeal is by the Revenue challenging the order passed by the Appellate Authority as well as the Commissioner of Appeals who disallowed the penalty imposed by the Assessing Authority. 2. The assessee is in the business of manufacturing acoustic enclosures for DG sets and Control Panels falling under Chapter sub-heading Nos. 7308 90 90 and 8537 10 00 of the schedule to the Central Excise Tariff Act, 1985. They purchased control panels manufactured from M/s. Power Control Equipments, Bangalore on payment of Central Excise duty and cleared the same to 100% EOU without payment of Central Excise duty and on the basis of CT3 certificate, misdeclaring that the same have been fabricated/manufactured by them and thereby ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointed out even before the issue of show cause notice, duty and interest is paid. The Tribunal did not find any justification to interfere with the order passed by the Appellate Authority and therefore, the appeal came to be dismissed. Aggrieved by the said orders, the Revenue is in appeal. 3. The learned Counsel for the Revenue assailing the impugned order contends that the facts are not in dispute. The assessee did not purchase the raw materials for the purpose of manufacturing control panels. On the contrary, he purchased finished control panels from M/s. Power Control Equipments, Bangalore on payment of Central Excise duty. But wrongly, he took credit of duty paid and utilised the same while making payment of duty. It cannot be said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the said circular is dated 20-10-2010, the policy behind the circular is to be understood and the assessee herein is a small time manufacturer and when he has paid the duty and interest, the penalty of ₹ 65,000/- which is the subject matter of the proceedings, the Revenue should not have preferred this appeal, when two fact finding authorities have concurrently held against the revenue. 5. Without going into the illegality or technicality and the application of the various provisions, we are satisfied that in the facts of this particular case that the Appellate Authorities committed no error in giving the benefit of waiver of penalty when the assessee had paid the duty and interest even before issue of show cause notice when the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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