2014 (2) TMI 1008 - AT - Central Excise

Waiver of penalty - short payment was due to error of interpretation of exemption Notification No. 15/2002, dated 1-3-2002 - Payment of Short duty - Held that - spell of contravention is only 5 months from the date of implementation of notification. There is no observation that the appellant deliberately caused loss to revenue except an assumption that there was intentional short-payment. As soon as the respondent came to understand right interpretation it made good loss of revenue. For this short spell of breach, it may not be construed that there was deliberate breach of knowable law. At the infancy stage of implementation of notification, arise of difficulties may not be ruled out. Finding no contumacious conduct of the respondent, granting waiver of penalty by ld. Commissioner (A) appears to be justified. Therefore, there shall be no interference to his order - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT NEW DELHI upheld the waiver of penalty by the ld. Commissioner (Appeals) due to an error of interpretation of an exemption Notification. The Revenue's appeal was dismissed as there was no deliberate breach of law by the respondent.