Penalty for alleged duty evasion requires evidence of intent; remand ordered for fresh, reasoned reconsideration.

Penalty could not be imposed mechanically where the record disclosed no material showing intention to evade duty, and the reduced duty demand was no longer in dispute. The tribunal held that the penalty question required fresh consideration by the adjudicating authority, with the assessee given an opportunity of hearing and a reasoned decision on both leviability and quantum. The penalty issue was therefore remanded for fresh adjudication.

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Issues: Whether penalty could be sustained and, if so, what quantum was leviable after the duty demand stood reduced.

Analysis: The reduced duty demand was no longer in dispute. On the penalty aspect, the record did not disclose any material indicating intention to evade duty. In the absence of such a finding, penalty could not be imposed mechanically. The matter, therefore, required fresh consideration by the adjudicating authority with an opportunity of hearing and a reasoned decision on the leviability and quantum of penalty.

Conclusion: The penalty issue was remanded for fresh adjudication.

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