2014 (5) TMI 161

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....ondent. JUDGMENT This appeal is by the Revenue challenging the order passed by the Tribunal, setting aside the confirmation of penalty and interest. 2. The facts are not in dispute, The assessee did not perform its export obligations. Therefore, it became liable to pay duty. On 6-1-2003, they deposited a sum of Rs. 7,24,161/- towards duty and penalty for the years 1999-2000, 2000-200....

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.... concerned. Aggrieved by the said order, the Revenue is in appeal. 3. From the aforesaid facts it is clear as the assessee did not perform its export obligation as the assessee had a short fall, there were an obligation to pay the duty to the extent of the short fall. The liability of duty as computed is not in dispute. Once the duty is not paid within the specified time the liability to p....

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....lty in these circumstances would not arise. Therefore, the order of the adjudicating authority imposing penalty is one without jurisdiction. 4. Insofar as the levy of interest is concerned, we see from the records the interest is calculated for 3 years on the amount, of duty payable for each year at the rate of 15%, it is highly improper. Interest is compensatory in nature. The interest is....

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....the interest and after apportioning the said interest portion, the remaining amount is to be refunded to the assessee. To that extent the order succeeds. 6. Hence, we pass the following order : ORDER (i)      Appeal is allowed in part. (ii)    The order of the Tribunal setting aside penalty is confirmed. Insofar as setting aside interest por....