SUPREME COURT OF INDIA

Before:- S. P. Bharucha, C.J.I., N. Santosh Hegde and Shivaraj V. Patil, JJ.

Civil Appeal No. 11943 of 1995. D/d. 16.4.2002.

Nagpur Alloy Castings Limited - Appellant

Versus

Collector of Central Excise - Respondent

Central Excise Act, 1944, Section 33 - Penalty - Imposition of - Tribunal quashing the demand for duty holding that extended period of limitation was not available to the Revenue - Tribunal also holding that assessee had nothing to gain by evading duty - Held, imposition of penalty, under these circumstances, is illogical.

[Para 1]

JUDGMENT

S. P. Bharucha, C.J.I., N. Santosh Hegde, J. - The Tribunal has, by the impugned order, upheld the imposition of penalty, though it has reduced it, after holding that the extended period of limitation was not available to the Revenue, quashing the demand for duty and holding that the appellant had nothing to gain by evading the payment of duty. The imposition of penalty, under these circumstances, is illogical.

2. The Civil Appeal is allowed and the order under appeal is set aside.

3. No order as to costs.

Appeal allowed.