PRATEEK JALAN, J.

1. This appeal filed by the Revenue, under Section 130 of Customs Act 1962 (hereafter, the Act), is directed against an order dated 01.09.2017 passed by the Customs Excise and Service Tax Appellate Tribunal (hereafter, the Tribunal) in Appeal No. C/53217/2015. By the impugned order, the Tribunal allowed the Respondent/ Assessee’s appeal against an order dated 04.06.2015 passed by the Commissioner of Customs (Exports), New Delhi and set aside the redemption fine and penalty imposed.

2. The present appeal was admitted on 03.08.2018 and the following questions of law were framed for consideration:

“(i) Did the Customs Excise and Sales Tax Appellate Tribunal (hereinafter CESTAT) fall into error in its interpretation of Notification No. 40/2006-Cus dated 01.05.2006, and also with respect to para 4.55.3 of the Handbook of Procedure for Export and Import.

(ii) Did the CESTAT err in law in its appreciation of specifications that the exporter had to provide and the declaration required, in terms of the above Notification No. 40/2006-Cus read with para 4.55.3 of the Handbook of Procedure for Export and Import) in the circumstances of the case?”

3. The facts giving rise