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TMI Blog2018 (10) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... or sold the same as scrap. The said sale of scrap was reflected in their records and was under the commercial invoice. It is well settled law that when the transactions are part of the records maintained by the assessee, no mala fide can be attributed to them to attract the penal provisions. Otherwise also, the interest to the tune of more than ₹ 1 lakh stand deposited by them, which is p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir. During the course of reparing of the machine, some scrap arose in the appellant s factory by way of worn out defective parts. The same were sold by the appellant under the cover of invoices and was duly reflected in their records. 3. Subsequently, a Show Cause Notice was issued to the assessee proposing confirmation of demand in respect of the sale of said defective parts. The appellant acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be held that non-payment of duty was on account of any mala fide, when the appellant had to pay huge interest amounts. In the absence of any evidence to the contrary, it seems to be a case of bona fide belief that the scrap arising out of destroyed and damaged machine is not required to pay any due. 5. In view of the foregoing discussions, I set aside the imposition of penalty on the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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