Hyva India Paid Differential Duty before SCN, Informed CE Department: CESTAT quashes Penalty u/s 11AC of

The CESTAT quashed a penalty under Section 11AC of the Central Excise Act, ruling in favor of Hyva India, which had paid differential duty before a show-cause notice (SCN) was issued. The case involved the company’s voluntary payment of the duty difference upon realizing that it had underpaid. The department had issued a penalty, arguing that the company had failed to properly assess the duty liability. However, the CESTAT found that the company had made the payment voluntarily and cooperated with the authorities. The tribunal held that since the company had already paid the duty before being issued an SCN, the penalty was not justified. This decision highlights the importance of voluntary compliance in excise matters.