The Supreme Court has set aside the order of the Customs and Excise Appellate Tribunal upholding the levy of duty and penalty for the import of furnace oil by Uniworth Textiles Ltd. The company had argued that the demand was delayed and therefore not valid. The tribunal reasoned that since the company procured furnace oil not for its own captive plant but for a sister concern, it could not claim exemption from payment of duty. The Supreme Court stated that the tribunal was wrong and its conclusion that non- payment was equivalent to collusion or willful misstatement was untenable. It rejected the revenue authorities contention that the act of the company was willful and mala fide. It is a serious allegation requiring high order of credibility and the authorities have not discharged this burden of proof.