Custom, Excise & Service Tax Tribunal
M/S Kamal Sponze Steel & Power Ltd vs Cce, Bhopal on 8 November, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
West Block No. 2, R.K. Puram, New Delhi 110 066.
Date of Hearing/Decision: 8.11.2016
Appeal No. E/2046/2009-EX(DB)
(Arising out of Order-in-Appeal No. 172/BPL/2009 dated 31.3.2009 passed by the Commissioner (Appeals), Central Excise, Bhopal)
M/s Kamal Sponze Steel & Power Ltd. Appellant
Vs.
CCE, Bhopal Respondent
Appearance Shri P.C. Kashiv, Advocate - for the appellant Shri G.R. Singh, D.R. - for the respondent CORAM: Honble Mr. Justice (Dr.) Satish Chandra, President Honble Mr. Ashok K. Arya, Member (Technical) Final Order No.55040/2016 Per Justice Dr. Satish Chandra:
This is an appeal filed against the Order-in-Appeal No. 172/BPL/2009 dated 31.3.2009 passed by the Commissioner (Appeals)
2. Heard Shri P.C. Kashiv, ld. Counsel for the appellant and Shri G.R. Singh, ld. AR for the Revenue.
3. After hearing both the sides and perusal of the record, it appears that the appellant is engaged in the manufacture of iron and steel products out of the raw material Iron Ore purchased from the market. The assessee has made the sale to the Jaipur unit i.e. less than 5% of the total sale. There was a difference in the valuation. After selling the same the appellant had deposited the duty as well as the interest of Rs. 5 lakhs.
4. From the record, it appears that the mistake occurred due to mis-calculation by the Chartered Accountant. Later, Cost Accountant worked out valuation implication and as contained short payment of duty. In the instant case, the duty as well as interest were deposited. As there was no loss to the exchequer, no malafide has been proved in the instant case. When it is so, then we find no reason to levy the penalty of Rs.13,62,081/-. Hence we set aside the impugned order to the effect that the duty and interest are confirmed but penalty is dropped. The assessee will get the relief accordingly.
5. In the result, the appeal filed by the appellant is partly allowed.
(Justice Dr. Satish Chandra) President (Ashok K. Arya) Member (Technical) RM 1