https://www.taxtmi.com/caselaws?id=267858 Interest and penalty under the excise recovery provisions were found unwarranted where duty-free yarn was supplied to an eligible handloom cooperative society and the Revenue failed to prove the supplier's knowledge of any later diversion to powerloom units. The exemption conditions were substantially met through supply to the society, cheque payment from its own account, and the required certificate of handloom use. A discrepancy in polyester content in only one consignment did not establish deliberate misdeclaration for all clearances. In the absence of proof of mala fide intent, suppression, or conscious contravention to evade duty, liability under the penalty and interest provisions was not attracted. en-us Wed, 13 May 2015 00:00:00 +0530 Fri, 12 Feb 2016 17:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=267858 Interest and penalty under the excise recovery provisions were found unwarranted where duty-free yarn was supplied to an eligible handloom cooperative society and the Revenue failed to prove the supplier's knowledge of any later diversion to powerloom units. The exemption conditions were substantially met through supply to the society, cheque payment from its own account, and the required certificate of handloom use. A discrepancy in polyester content in only one consignment did not establish deliberate misdeclaration for all clearances. In the absence of proof of mala fide intent, suppression, or conscious contravention to evade duty, liability under the penalty and interest provisions was not attracted. Case-Laws Central Excise Wed, 13 May 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=267858