Special Additional Duty penalty unsustainable where duty demand was not contested; penalty set aside on the facts.

Penalty imposed in connection with denial of Special Additional Duty of Customs exemption was unsustainable on the facts, as the duty demand itself was not contested before the Tribunal. Applying its earlier decision on the same issue, the Tribunal held that the duty liability remained undisturbed but the penalty could not be upheld in this case. The penalty was therefore set aside, and the appeals succeeded to that limited extent while the customs duty demand was sustained.

---

---

Issues: Whether penalty imposed in relation to denial of Special Additional Duty exemption under the customs notifications was sustainable.

Analysis: The demand of Special Additional Duty of Customs was not contested before the Tribunal, and the only dispute concerned the penalty. The Tribunal followed its earlier decision on the same issue and applied the same reasoning to hold that, while the duty liability remained undisturbed, the penalty could not be sustained on the facts of the case.

Conclusion: The penalty was set aside and the appeals were allowed to that extent, while the duty demand was sustained.

---