M.K. Sharma, Anil R. Dave, JJ. - (1.) This appeal is directed against the judgment and order dated 03.10.2002 passed by CEGAT, South Zonal Bench at Bangalore.
(2.) The issue that was urged before the Tribunal by the respondent herein was whether in view of the fact that there was a delay of one or two days in making payment of duty with reference to clearance of the goods and in the facts and circumstances, imposition of duty was justifiable. The aforesaid issue was considered by the Tribunal and after considering the facts and circumstances of the case, the contention of the counsel appearing for the respondent was accepted. In view of the fact that there was delay of only one or two days in making the payment of duty and, therefore, some lenient view could be called for and, therefore, penalty was reduced to Rs. 1 lakh as against Rs. 17,06,632/-.
(3.) A show cause notice was issued by the appellant herein in which it was stated that the assessee had cleared the finished goods either on less payment of duty or without payment of duty for certain invoices and thus violated the provisions of the Central Excise Rules read with Section 11 A of the Central Excise Act. In the show cause notice, it was specifically stated that in view of the aforesaid short payment or non payment, penalty equal to the duty payable should be paid by the assessee as provided under Section 11 AC of the Central Excise Act. The extended period of limitation was also invoked by the department.;