2002 (2) TMI 242

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..... PG Cables Ltd., the appellant, purchased cable jointing kits from their manufacture and sold them to its own customers. While doing so, it recovered from the customer's amounts as representing excise duty on these kits which were greater than the amounts that the manufacturer actually paid. On this being pointed out to it, it paid to the department the difference between the duty paid by the manuf .....

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..... cise duty. It was the manufacturer that was required to pay duty, and not the appellant. The amounts only represented duty, and hence for duty Section 11AB and Section 11AC which would apply in cases where duty of excise has not been levied or paid or has been short levied or short paid or erroneously different. The departmental representative reiterates what the Commissioner (Appeals) has found. .....

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..... His findings with regard to the acceptance of bona fides on the part of the appellant are no doubt true. However, in the absence of statutory provisions the absence of bona fides is not enough to justify the penalty. 6. The appeal is accordingly allowed and the orders of the Commissioner (Appeals) confirming liability to interest under Section 11AB and penalty under Section 11AC are set aside. .....

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