TMI Blog2014 (2) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... ly 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. - Appeal No.E/MISC/4207 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid the duty on such goods found short as per the figures in the balance sheets. 4. The second issue involved in the notice was that the respondent had cleared certain imported components. For such samples, they had availed exemption under notification 2/95-CE dt. 01-04-95. Revenue was of the view that the said notification would apply only to final products and not for components imported which were removed as such. Further if the goods were actually exported as claimed by the respondent, proper procedures should have been followed. That was also not done and for that reason, the demand is Rs.4,03,052/-. 5. When this issue was pointed out, respondent paid the entire duty amount of Rs. 17,26,870/- and interest of Rs.5,96,125/- on the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he matter by the officers respondents would have got away with such short payment and it is only proper that penalty is imposed for such wrong availment of notification. 10. The Ld Advocate for respondent herein submits that they are not challenging duty liability and interest payable and is contesting only penalty that may be imposed in this appeal before the Tribunal. 11. The learned advocate further submits that the respondent had done manufacturing activity worth about Rs.100 crores in a year and very large number of ball bearings and other components were required for manufacturing activity. In that manufacturing process, some of the items may be found defective and may be rejected. Considering huge number of parts handled in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as samples to the foreign buyers and this submission has not been rebutted by the adjudicating authority or Commissioner (Appeals). The submission of learned advocate is that they were acting in a bonafide manner and as soon as the error was pointed out they had paid duty involved. There was slight delay in payment of interest as they could calculate interest only when actual duty amount was known. 13. I have considered the submissions of Revenue that Commissioner (Appeals) has not verified the facts for condoning the delay. In the first place, it is not clear what were the facts that were available before Commissioner (Appeals). The delay involved was only 23 days. Since the Commissioner (Appeals) exercised the discretion vested on him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty 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. 15. In the case of shortages in stock found, I notice that though the Order-in-Original used the expression concealment of facts by way of book adjustment (in para 2 thereof) 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. 16. Consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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