Substantial question of law absent where Tribunal found duty paid and no rule violation, so penalty deletion stood.

The Tribunal's deletion of penalty was upheld because it had made a clear factual finding that the assessee discharged its duty liability in accordance with the annual capacity of production order and, after final determination, there was no contravention of the applicable rules. With the factual basis of default negated, the Revenue's challenge did not give rise to any substantial question of law. The appeal was therefore not entertained on merits and the assessee's relief was sustained.

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Issues: Whether any substantial question of law arose from the Tribunal's finding that the assessee had discharged its duty liability and committed no default so as to justify interference with the penalty order.

Analysis: The Tribunal had recorded a clear factual finding that the assessee paid duty in terms of the annual capacity of production order and, after final determination, there was no contravention of the applicable rules. Once the factual basis of default was negated, the Revenue's challenge to the deletion of penalty did not raise any substantial question of law.

Conclusion: No substantial question of law arose. The appeal was not entertained on merits and the assessee's relief was sustained.

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