TMI Blog2004 (4) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... r (Appeals) has set aside the mandatory penalty under Section 11AC and interest imposed on the respondents by the adjudicating authority. 2. I have heard both the sides. The perusal of the record shows that the respondents were earlier working under the SSI exemption Notification 1/93. But during the period in question (1-4-1997 to 25-3-1998), they crossed the exemption limit of Rs. 30 lakhs, bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as contended that since duty was paid before the issuance of the show cause notice, and that the respondents were ignorant of the law and had no intention to evade payment of duty, therefore, the penalty and interest have been rightly set aside against them by the Commissioner (Appeals). But in my view this contention of the Counsel is wholly misconceived and cannot be accepted. It is difficult to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e liable to pay interest also under Section 11AB. Therefore, the impugned order of the Commissioner (Appeals) in respect of penalty and interest cannot be sustained and is set aside. However, keeping in view the facts and circumstances of the case, the penalty under Section 11AC as imposed by the adjudicating authority, is reduced to Rs. 50,000/-. The respondents are also liable to pay interest fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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