2007 (3) TMI 651 - AT - Central Excise

Summary

Issues involved: Imposition of penalty for taking excess credit of countervailing duty (CVD) on imported furnace oil.

Summary:

Issue 1: Imposition of penalty for taking excess credit of CVD

The appellant imported furnace oil and took credit of entire duty, including CVD, by mistake. Upon realizing the error, they immediately reversed the excess credit. The impugned order imposed a penalty of 100% on the appellant. The appellant contended that there was no mala fide intention, as the excess credit remained unutilized and was promptly reversed upon detection. The appellant's actions were transparent and subject to scrutiny by department officers. Therefore, the imposition of penalty was deemed unjustified. The Tribunal set aside the penalty and allowed the appeals in favor of the appellant, granting consequential relief.