CESTAT Appeals Ground of Limitation: No Penalty for Intention to Evade Duty

The Appellate Tribunal CESTAT, Ahmedabad, allowed the appeal solely on the ground of limitation due to the absence of deliberate intention to evade payment of duty by the appellant, a Government of India undertaking. The Tribunal held that since no penalty was imposed for lack of intention to evade duty, the longer period of limitation should not have been invoked, following a precedent. The impugned order was set aside without considering the merits of the case.

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Issues: Limitation period for appeal due to absence of deliberate intention to evade payment of duty.

The judgment by the Appellate Tribunal CESTAT, Ahmedabad, involved a case where a show cause notice was issued beyond the normal period of limitation for the period 1986-87. The adjudicating authority had noted the absence of deliberate intention to evade payment of duty by the appellant, a Government of India undertaking, and hence did not impose any penalty. The Revenue did not appeal against this part of the order. The appellant argued that since there was no mala fide intention, the longer period of limitation should not have been invoked. Citing a precedent, the Tribunal held that when no penalty is imposed due to lack of intention to evade duty, the same criteria should apply for limitation purposes. Thus, based on the absence of mala fide intention and following the precedent, the Tribunal set aside the impugned order and allowed the appeal solely on the ground of limitation without delving into the merits of the case.

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