Per G.A. Brahma Deva :

This is an appeal filed by the Revenue. Revenue has come in appeal on the ground that Commissioner was not right in not imposing penalty under Rule 173Q read with Section 11AC of the Central Excise Rules 1944.

2. Heard both sides.

3. Shri L. Narasimha Murthy learned DR appearing for the Revenue reiterated the ground taken by the Department.

4. Shri A.P. Datar learned Senior Counsel appearing for the respondents submitted that short payment of duty has occurred due to improper understanding of the relevant notification. However, they made payments even before the issue of show-cause notice. In this connection he drew our attention to para 8.6 of the impugned order which reads as under :

"Coming to the question of imposition of penalties, the show-cause notice has proposed a penalty under Rule 173Q of Central Excise Rules 1944 and under Section 11AC of the Central Excise Act 1944. On careful perusal of the Show-cause Notice, it is observed that the short payment of duty has occurred due to improper understanding of the relevant notification. Such being the factual position, it would be unreasonable to consider the clearances of cement during the period in quest