Penalty on re-seller unsustainable as classification done by importer adopted by re-seller

Professional Copier Services India (Pvt) Ltd Vs State of Kerala (Kerala High Court) Kerala High Court held that as importer-seller classified the HSN 8443 3100, the purchaser/re-seller cannot be said to have wilfully classified the machines under a wrong head with the intention to evade payment of correct/higher rate of tax. Hence, penalty unsustainable. Facts- The petitioners are companies engaged in the business of sales of IT products. The petitioner had purchased two models of machines, ‘TaskAlfa 180’ and ‘TaskAlfa 220’ from the importer-seller – M/s. Kyocera Mita...