ORDER
Krishna Kumar, Member (J)
1.This is an appeal challenging the imposition of penalty of Rs. 46,926. Shri J.S. Agarwal, learned Advocate has appeared on behalf of the appellant. He has submitted that the show cause notice in this case was issued on 7.4.1998 and there is no mens rea alleged therein against the appellants. The officers have visited the site on 15.10.1997. The duty amount in this case was paid on 20.10.1997 and 30.1.1998 much before the issue of the show cause notice. In support of his contention he relied on the decision of this Tribunal in the case of Escorts Ltd. v. CCE, Delhi 2002 (48) RLT 15, and Amritsar Crown Caps (P) Ltd. v. CCE, Chandigarh 2001 (46) RLT 169. He, therefore, submitted that in view of the said decisions the penalty imposed on the appellants may be set aside.
2. Shri A.S. Bedi, learned SDR appeared on behalf of the Revenue and he contended that the penalty under Section 11AC is mandatory. Besides, the appellants have also challenged the formula worked out by the Department, but ultimately the duty was paid by them as per the formula worked out by the Department. It is, therefore, necessary that the penalty is upheld against them.
3. After hearing the rival submissions and perusal of the cases cited by the learned Advocate for the appellants and perusal of the records, I find that interests of justice would be met if the amount of penalty is reduced to Rs. 10,000 only. The appeal is thus partly allowed.