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2015 (4) TMI 347 - HC - CustomsClassification of goods - toys, viz., Talking Parrot - Wrong classification of goods - Imposition of penalty - Malafide intention or bonafide belief - Held that:- during the entire proceedings the assessee/importer was trying to prove the classification of goods imported in its favour. While the Commissioner (Appeals) differed with the finding of the adjudicating authority, the Tribunal also, initially, on its part, was not clear, as there were two different views and, therefore, the matter was referred to a Larger Bench, which came to decide the issue once and for all. - Therefore, it is clear that the assessee was all along pursuing the matter diligently under the bona fide belief that the classification as made by it is correct. However, this aspect has been lost sight of by the Tribunal, while upholding the order of the original authority, whereby the penalty imposed on the assessee has also been confirmed. It is clear from the records that the assessee was pursuing the matter under the bona fide belief that the classification offered by it is correct. In such circumstances, it cannot be said that the act of the assessee was wilful, deliberate and dishonest, in that he wanted to avoid payment of duty, thereby evading tax liability. The present case falls squarely within the parameters as propounded by the Supreme Court in Akbar Badurddin's case (1990 (2) TMI 50 - SUPREME COURT OF INDIA) - penalty, as imposed on the appellant/assessee is not justified in the facts of the present case, which the Tribunal failed to set aside - Decided in favour of assessee.
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