2009 (5) TMI 520 - HC - Central Excise

Demand - the respondent that being a Khadi and Village Industrial unit financed by the Khadi and Village Industries Board it was under bona fide belief that excise duty was not payable on the product. Tribunal restricting demand of duty only to six months for the reason that respondent was not engaged in any suppression. Held that- there is no ground to interfere with the order of the Tribunal.

Summary

The High Court of Kerala dismissed the appeal against the Customs, Excise & Service Tax Appellate Tribunal's order, which limited the duty demand to six months. The respondent, a Khadi and Village Industrial unit, believed in good faith that excise duty was not payable on the product. The court found no reason to overturn the Tribunal's decision.