Dismissed

Commissioner Central Excise Comm Ludhiana v. M/S Hawkins Cookers Ltd.

Punjab & Haryana HC22 Apr 2013CEA/42/2012

Case brief

AI extract

What is this about?

The High Court dismissed the appeal by the Central Excise Commissioner against the Tribunal's order quashing a penalty. The Court upheld the Tribunal's finding that the assessee's continued payment of concessional duty till September 2002 after its withdrawal was an inadvertent mistake without intention to evade duty.

What did the court decide?

The appeal was dismissed; no penalty was imposed.

Commissioner Central Excise Comm Ludhiana Vs… — Banking and Recovery | Punjab & Haryana HC (2013)

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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Date of decision: 22.04.2013 CEA No. 42 of 2012

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Commissioner Central Excise Commissionerate, Ludhiana

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......Appellant

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vs.

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M/s Hawkins Cookers Ltd. Hoshiarpur

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.....Respondent

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CORAM: - HON’BLE MR. JUSTICE HEMANT GUPTA HON'BLE MS. JUSTICE RITU BAHRI

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Present: - Mr. Sukhdev Sharma, Advocate for the appellant. Hemant Gupta, J

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Revenue is in appeal under Section 35(G) of the Central Excise Act, 1944 (for short the 'Act') aggrieved against the order passed by the Customs Excise and Service Tax Appellate Tribunal (for short the 'Tribunal'), setting aside the penalty imposed as a consequence of payment of duty of 4% on parts of pressure cookers till September 2002.

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As per the tariff plan notified, the parts of pressure cookers were liable to duty @ 16% but vide the notification dated 1.3.2002, the concessional rate of duty at 4% were contemplated. This exemption was withdrawn vide the notification dated 27.4.2002 but the assessee continued to pay the duty at the concessional rate till September 2002. The assessee has paid the amount of duty along with interest when, the mistake came to their notice. The Adjudicating Authority has imposed the penalty for paying the less amount of duty even after withdrawal of the

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exemption vide the notification dated 27.4.2002. But in appeal against the order of the Adjudicating Authority, the Commissioner (Appeals) reduced the amount of penalty to Rs. 1.00 lac which amount has been set aside by the Tribunal in the order impugned in the present appeal. It has been found by the Tribunal that it was a case of inadvertent mistake and that there was no intention to evade the duty and therefore there is no case for imposition for the penalty.

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We find that the reasoning given by the Tribunal cannot be said to be illegal or unwarranted. The assessee was entitled to exemption by virtue of notification dated 1.3.2002. The said notification was withdrawn on 27.4.2002. The non payment of duty for some time after withdrawal of exemption will not lead to finding of intentional evasion of duty.

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We do not find any substantial question of law arises for consideration.

Dismissed.

(HEMANT GUPTA) JUDGE

22.04.2013 preeti

(RITU BAHRI) JUDGE

Commissioner Central Excise Comm Ludhiana v. M/S Hawkins Cookers Ltd.

Case brief

What is this about?

What did the court decide?

Commissioner Central Excise Comm Ludhiana v. M/S Hawkins Cookers Ltd.

Case brief

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What did the court decide?

What the court decided

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