2018 (11) TMI 898

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.... N.N. Prabhudesai, Supdt (AR) for the respondent ORDER Per: Archana Wadhwa After hearing both sides, we find that vide Tribunal's order no. A/231/2007/CII/EB dated 29.03.2007 the duty of lakhs approx was confirmed against the appellant. However, the confirmation of interest and imposition of penalty was set aside by observing that the appellant is a state government and there could be....

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....ine, bus trolley etc. in their workshop located at Dadar. The appellant had entertained a bonafide belief that inasmuch as the said manufactured goods are not being sold by them through any other independent entity but is being used captively for the maintenance of the buses being ru pel by them, there was no need to pay duty of excise. As soon as the objection was raised by the revenue, the appel....

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....ex court that the decision in Dharmendra Textile is not to the effect that Section 11AC would apply to each and every case of non-payment or short payment of duty. As such, it was observed that Dharmendra Textile held that though the application of Section 11AC would depend upon the existence or otherwise or the condition expressly stated in the Section, once the section is applicable in the case,....

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....ere not being sold, there could be a bonafide belief on their part that the same would not attract duty of excise. The revenue has also not produced any evidence to show that the said non-payment of duty was with a malafide intention. 6. In such a scenario, imposition of penalty on the appellant is neither justified nor warranted. As such, we set aside the penalty imposed upon them in terms of ....