Judgment:
Per Dr. Chittaranjan Satapathy
Heard both sides. The lower appellate authority has set aside the penalty on the ground that the duty was paid prior to issue of show-cause notice. The Department is in appeal against the same.
2. Both sides agree that in the light of the Hon’ble Supreme Court’s decision in the case of Union of India Vs. Dharmendra Textiles 2008 (231) ELT 3 (SC) and the subsequent decision in the case of Union of India Vs. Rajasthan Spinning and Weaving Mills 2009 (238) ELT 3 (SC) the matter requires to be re-examined by the lower appellate authority as to whether the elements of Section 11AC are present in this case requiring imposition of penalty. As such, the impugned order is set aside and the appeal is remanded. Both sides should be given an adequate opportunity of hearing before passing fresh order. The appeal is allowed by way of remand.