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2015 (11) TMI 456 - CESTAT MUMBAIDuty demand - Abatement claim - Penalty for abatement - Held that:- Products in question are considered as evasion prone goods hence the government brought in the legislation to tax the said goods based upon the production capacity. The legislative intent is very clear that though the duty liability is on production capacity ascertained, abatement was granted if the procedures are followed. Having not followed the procedure, which are required for an assessee to inform the authorities that there is closure of unit due to non availability of power and revenue authorities on inspection record the same and grant an abatement. In the case in hand, it is undisputed that appellant has not filed any declaration for abatement; they cannot claim the same belatedly even if there was no power connection during the specific period in a month. To that extent, we hold that appellant has no case on merits and the adjudicating authority was correct in confirming the demands with interest. - appellant could have entertained a bone fide belief that the abatement from the duty payment can be claimed subsequently, hence we find that the penalties are unwarranted. Accordingly, we set aside the penalties imposed - Decided partly in favour of assessee.
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