Procedural error leading to short payment shouldn’t result in hefty penalty for director: CESTAT

Azaz Lokhandwala Director Vs C.C.E. & S.T.-Vadodara (CESTAT Ahmedabad) Introduction: In a notable judgment by the CESTAT Ahmedabad, a penalty imposed on Shri Azaz Lokhandwala, Director of Schurter Electronics (India) Pvt. Ltd, has been quashed. This comes after allegations against him about short payments of duty in relation to DTA clearance without permission. Analysis: The heart of the matter revolved around the imposition of a penalty of Rs. 1 Lakh under Rule 26 of Central Excise Rules, 2002. The case of demand against Schurter Electronics had already been settled under the Sabka Vishwa...