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2015 (2) TMI 1307 - KERALA HIGH COURTImposition of penalty - KVAT Act - mis-classification of a item - sanitary equipments and fittings that are made of brass - HELD THAT:- There is no consideration in the said orders of the specific entry that deals with articles of brass, where there is a reference to an eight digit HSN code. Exts.P16 to P20 orders do not indicate as to why the products in question would not merit classification under the specific entry, and would rather be classifiable under the residual entry - In my view, such an exercise has necessarily to be done by an authority who proposes to impose a penalty on an assessee on the ground of mis-classification of an item. The issue of classification being a mixed question of law and fact, it is incumbent upon the taxing authority to correctly determine the classification of the item, before arriving at a finding that the item in question has been misclassified by the assessee dealer. The 1st respondent is required to re-consider the aspect of imposition of penalty on the petitioner, for the assessment years in question - petition allowed in part.
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