2011 (9) TMI 898 - HC - Central Excise

Imposition of penalty - Appellate Authorities set aside the penalty imposed on the assessee on the ground that he had paid duty with interest and there is no fraud suppression as the excisable goods was transferred by way of stock transfer - Held that - Penalty is leviable only on the conditions which are set out in the section being fulfilled. If two authorities on appreciation of entire material on record concurrently held that those conditions are not fulfilled and that being a pure question of fact we do not see any error to interfere with the order - Decided against Revenue.

Summary

The High Court of Karnataka dismissed the appeal by the revenue challenging the setting aside of a penalty imposed on the assessee. The penalty was set aside because duty with interest was paid, and there was no fraud or suppression as the goods were transferred by stock transfer. The court emphasized that penalty is not automatic and can only be levied if specific conditions are met.