2010 (9) TMI 275 - SC - Central Excise

Penalty - bona fide mistake - Tribunal finding that it is a case of bona fide mistake and upheld by the High Court Held that - Nothing could be shown to us from the records to disprove that it was a bona fide mistake - and not had intentionally avoided payment of the duty - present is a case of bona fide mistake Appeal is dismissed

Summary

Issues:
Challenge to order of Calcutta High Court affirming Tribunal's findings on bona fide mistake in duty payment.

Analysis:
The Supreme Court considered an appeal challenging the Calcutta High Court's order affirming the Tribunal's findings related to a bona fide mistake in duty payment. The Tribunal had concluded that the case involved a genuine error, a finding upheld by the High Court. The Supreme Court noted that no evidence disproving the mistake or intentional duty evasion was presented. After reviewing the records and legal precedents, the Court determined that the case did not warrant interference, citing the decision in Union of India v. Rajasthan Spinning and Weaving Mills. In this decision, the Court clarified that penalties under Section 11AC are for deliberate deception to evade duty, which was not the case here due to the bona fide mistake. Therefore, the Court dismissed the appeal, upholding the lower courts' findings.