Per Justice K.K. Usha : The issue raised for consideration before the Larger Bench is whether penalty under Section 11AC is liable to be imposed on the assessee or whether interest under Section 11AB is liable to be levied on duty, in cases where the duty has been deposited by the assessee before issue of show cause notice. It is contended by the ld. counsel on behalf of the assessee that since they have deposited the duty amount before issue of show-cause notice, penalty under Section 11AC can not be imposed. In support of the above contention, reliance was placed on the following decisions of the Tribunal:-

(1) Ashok Leyland Ltd. Vs. CCE, Chennai [2003 (55) RLT 816 (CEGAT-Chennai)]

(2) Rashtriya Ispat Nigam Ltd. Vs. CCE [2002 (54) RLT 317 (CEGAT-Ban.)=2003 (161) ELT 285 (Tribunal-Bang.)]

2. The Revenue, on the other hand, submitted that when fraud, collusion or wilful mis-statement or suppression of facts, etc. are alleged against the assessee, penalty under Section 11AC can be imposed irrespective of the fact that the assessee has deposited the duty before issue of show cause notice. In support of their contention, reliance was placed on the following three decisions:-

(1) E