2005 (2) TMI 664 - AT - Central Excise

Summary

Issues: Revenue's appeal against setting aside penalty on M/s. Gopal Traders

Analysis:
The judgment involves an appeal by the Revenue against the setting aside of a penalty imposed on M/s. Gopal Traders by the Commissioner (Appeals). The case revolves around the non-payment of National Calamity Contingent Duty by the respondents, who were small-scale manufacturers of unbranded chewing tobacco. The respondents were availing small-scale exemption notifications but failed to pay the duty amounting to Rs. 2,29,200/- from March to November 2001. The Additional Commissioner had confirmed the duty demand and imposed a penalty, which was later set aside by the Commissioner (Appeals) based on the respondents' plea of bona fide belief. The Commissioner (Appeals) accepted the argument that as small-scale manufacturers not paying basic duty or additional basic duty, the respondents could not have anticipated the liability for National Calamity Contingent Duty. The judgment highlights that the respondents were not paying any duty and were not even registered with the Department, leading to the rejection of the Revenue's appeal.

In summary, the key issue in this judgment is the imposition and subsequent setting aside of a penalty on M/s. Gopal Traders for non-payment of National Calamity Contingent Duty. The judgment emphasizes the small-scale nature of the respondents' manufacturing operations, their lack of registration with the Department, and the Commissioner (Appeals) accepting their plea of bona fide belief as grounds for setting aside the penalty. The decision ultimately rejects the Revenue's appeal, maintaining the Commissioner (Appeals)'s ruling in favor of the respondents.