2004 (12) TMI 592

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..... er per : Jyoti Balasundaram, Vice-President]. The appellants herein are a sugar mill who had cleared sugar for export to merchant exporters namely M/s. Yogi Exporter and M/s. Ashok Exporter on payment of duty at the time of clearance during the period from 1-9-2001 to 30-11-2001. The exporter appeared to have diverted the sugar for domestic market instead of exporting the same, hence show c .....

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..... f any of the provisions of these rules or the notifications issued under these rules; or (b) does not account for any excisable goods produced or manufactured or stored by him; or (c) engages in the manufacture, production or storage of any excisable goods without having applied for the registration certificate required under section 6 of the Act; or (d) contravenes any of the pr .....

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..... reason that the order does not disclose any intention on the part of the appellants to evade payment of duty and there is nothing on record to show that when the appellant sold the goods to merchant exporter, they knew or had reason to believe that the sugar would not be exported by the merchant exporters/buyers. We, therefore, set aside the penalty and allow the appeal. (Operative part pronoun .....

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