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TMI Blog2018 (9) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... s imported by them should be reclassified under 40021100 of the 1st Schedule to the Customs Act, 1975; that while the benefit of Notification No. 21/2002 - Cus. dt. 01.03.2002 cannot be denied, etc. 1.2 The assessee offered a detailed reply in response to the Show Cause Notice and pleaded inter alia as under: * Binder imported earlier by them from Dow Chemicals under description 'Styrene Butadiene Latex-XQ83228' and classified under 40021100 based on word 'latex'; * Supplier introduced more efficient binder with description 'Styrene Butadiene Copolymer DEB3111' and due to word 'copolymer' & based on discussions with CHA the item was classified under 39039090 under bona fide belief; * The 10 Bills of Entry filed under classification 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he duty. Aggrieved, the assessee is in appeal before this forum. 2. Heard Shri. J. Shankar Raman, Ld. Advocate appearing for the assessee and Shri. B. Balamurugan, Ld. Department Representative appearing for the Revenue. 3.1 Shri. J. Shankar Raman, Ld. Advocate appearing for the assessee, submitted that the assessee is engaged in the manufacture of paper and paper board of various varieties and grades and imported raw materials for its aforesaid manufacturing activity from overseas suppliers. One of such inputs being 'binder' which was used for the purpose of coating during the manufacture of paper boards, from Dow Chemicals which carried the description "Styrene Butadiene Latex-XQ83228'. Later on, the supplier introduced a more efficient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was admitted right at the initial stage, we have to only hold that it was without any intention of defrauding the Revenue and therefore, we are of the view that no penalty is exigible. 6.2 The Ld. Commissioner of Customs (Appeals) has, only after appreciating the bona fides of the assessee, reduced the penalty under Section 114A which fact only establishes that even the Department did accept the bona fide classification entertained by the assessee. When the lower appellate authority grants leniency to an extent of 75%, we see no reason not to extend it to 100% when clearly the Revenue is not in appeal. 6.3 Accordingly, we do not intend to go into the issue of classification as the same was not pressed and conceded by the Ld. Advocate duri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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