RT 12 return penalty fails where nil-duty classification remained operative and no stay was in force.

Non-filing of RT 12 returns could not attract penalty where the product had already been classified under sub-heading 3003.20 with a nil rate of duty and no stay had been granted against that classification. In that situation, the returns were not required for the relevant period, so the penalty imposed for non-submission lacked legal basis and was set aside. The Revenue's challenge failed.

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Issues: Whether the penalty imposed for non-submission of RT 12 returns was sustainable when the goods had already been held liable to nil rate of duty and no stay had been granted against that classification.

Analysis: The earlier order of the Collector (Appeals) had held the product classifiable under sub-heading 3003.20 carrying nil rate of duty. In the absence of any subsequent stay of that order, RT 12 returns were not required to be filed for the relevant period. The impugned penalty was therefore without basis.

Conclusion: The penalty of Rs. 100/- was rightly set aside and the Revenue's appeal was rejected.

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