Cestat Holds That Mere Mentioning of Wrong Code While Making Payment of Duty Cannot Justify Imposition of Interest and Penalty

Recently, Hon’ble CESTAT, Allahabad has in the case of M/s Printotech Global Limited v. The Commissioner, CGST, Noida in Excise Appeal No. 71258 of 2018 held that imposition of interest and penalty is not justified in instances where assessee deposited duty by mentioning wrong code.

The Hon’ble Tribunal, relied on decision of Hon’ble Gujarat High Court in Devang Paper Mills Pvt. Ltd. v. Union of India reported at 2016 (41) STR 418 (Guj.) wherein it was held that mere mentioning of wrong code in the process cannot result into harsh consequence of entire payment not being recognized as valid. As such, it was held that levy of interest and penalty is not sustainable.

The facts of the case were that the Appellant had paid excise duty mentioning wrong code. The Authorities pressurized the Appellant to pay the excise duty under present existing registration number. Having paid the excise duty again, the Appellant applied for refund of duty paid under wrong code, which was allowed by Authorities after appropriating interest and penalty. Aggrieved by imposition of interest and penalty, the Appellant filed appeal to CESTAT, challenging the demand.

The said order is attached herewith.

Final Order dated- 01.08.2019

The case was argued by Adv. Gaurav Gupta, Associate, ALA Legal.

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