Appellate Tribunal CEGAT sets aside penalty, remands case for reassessment of assessable value and duty calculation.

The Appellate Tribunal CEGAT allowed the appeal, setting aside the penalty and remanding the case for reassessment of assessable value and duty calculation based on the price realized for two consignments of hair oil. The manufacturer mistakenly believed they were exempt from duty when clearing the consignments.

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The Appellate Tribunal CEGAT, New Delhi, allowed the appeal filed by a manufacturer of hair oil and soaps regarding the confirmation of Central Excise duty demand. The Tribunal set aside the penalty imposed by the Assistant Collector and remanded the case for redetermination of assessable value and duty element calculation based on the price realized for two consignments of hair oil. The appellant had cleared the consignments without paying duty, mistakenly assuming exemption eligibility.

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