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2014 (2) TMI 287 - AT - CustomsLevy of penalty - concealment of facts or not - Demand of differential duty - Shortage in inventory - Goods cleared as samples - Exemption under notification 2/95-CE dt. 01-04-95 - Held that:- A question can arise whether declaration of information in the books accounts is sufficient disclosure to the department and whether it can be taken as a case of suppression when the facts are reflected in the balance sheet but not specifically declared to the department - goods were cleared as samples and the position was reflected in the returns filed. Since what is demanded is only differential duty and since there was payment of duty as per notification 2/95-CE, it is apparent that the matter has been declared in the return and hence I am of the view that this was a case of bonafide mistake rather than an attempt to evade payment of duty. Though the Order-in-Original used the expression ‘concealment of facts by way of book adjustment’ the order does not explain what book adjustment was done except to making a provision to reflect the shortage in the financial statement. This action is not an action of suppression but an action to deal with the issue in an open manner. Such approach is confirmed by the fact that they paid duty and interest without any protracted proceedings - No penalty.
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