2007 (3) TMI 484 - AT - Central Excise

Summary

Issues:
- Duty payment on clearance of soap stock without payment of duty
- Imposition of penalty for non-payment of duty
- Bona fide impression based on Tribunal's judgment
- Legal validity of orders passed by lower authorities

Analysis:
The case involves the issue of duty payment on the clearance of soap stock by the appellant without payment of duty. The appellant, engaged in the manufacture of Vanaspati Oil and Refined Edible Oil, cleared soap stock without duty payment. Upon realization, the appellant paid the duty amount for the cleared soap stock. The appellant believed that the soap stock did not attract duty based on a Tribunal's judgment in a previous case. The Assistant Commissioner confirmed the duty demand but dropped the penalty. The Revenue appealed against this decision, arguing for the imposition of a penalty. The Commissioner (Appeals) also found no mala fide intent on the part of the assessee and held that penalty imposition was not warranted as duty was paid before the show cause notice was issued.

The Tribunal noted that the duty non-payment was due to a bona fide impression formed by the assessee based on the Tribunal's previous judgment. The appellant promptly paid the duty upon being informed, despite the limitation period. The Tribunal concluded that the non-payment was not an attempt to evade duty and, therefore, penal provisions should not be invoked against the assessee. The Tribunal upheld the lower authorities' decisions, stating that the orders were legal and did not require any interference. Consequently, the revenue appeal was rejected. The judgment was pronounced on 14-3-07 by Ms. Archana Wadhwa, J.