ORDER
Jeet Ram Kait, Member (T)
1. This appeal is directed against the Order-in-Appeal No. 347 (RP) CE/JPR-1 (205)/2002, dated 10-5-2002 by which the learned Commissioner confirmed the order of the lower authority imposing penalty under Section 11AC and confirmed the demands under Section 11A of the Central Excise Act, 1944.
2. Appearing on behalf of the appellants, Shri Muthu Venkatraman, Advocate submits that they had paid the duty of Rs. 2,19,098/- vide their PLA Entry No. 1493, dated 13-1-2000 which was also informed to the Superintendent (Anti-Evasion) Central Excise, Jaipur vide their Reference No. EID/EXC/ short/99-2000, dated NIL. Ld. Advocate submits that inasmuch as they have paid the duty demanded before issue of the show cause notice, they cannot be imposed any penalty under Section 11AC of the Act ibid. In this connection, he has relied on the judgment rendered by this Bench in the case of Dynamatic Technologies Ltd. v. CCE, Chennai – 2003 (54) RLT 675 (CEGAT-Chen.) by which this Bench held that when duty amount is voluntarily paid before issue of show cause notice, penalty under Section 11AC or under Rule 173Q of the Central Excise Rules is not leviable. It was also held that the interest under Section 11AB is also not leviable when duty amount has been paid voluntarily before issue of show cause notice. He has also submitted the judgments by various co-ordinate Benches as well as by this Bench on this issue.
3. Heard learned DR Shri C. Mani.
4. We have considered the submissions made by both sides and find that the issue is no longer res Integra as it is now a settled issue that in case the duty amount has been paid voluntarily before issue of the show cause notice, no penalty under Section 11AC or under Rule 173Q of CER, 1944 and no interest under Section 11AB of the Act ibid can be levied in such cases. In view of above well settled legal position, the impugned order of imposition of penalty under Section 11AC and of interest of Section 11AB is set aside. But for the above modification, their appeal is otherwise rejected.