COMMISSIONER OF C. EX. Vs. RAKESH SINGHAL

JUDGEMENT

(1.) HEARD both sides. Revenue filed this appeal against the order -in -appeal passed by the Commissioner (Appeals) whereby penalty on the present respondent was set aside.

(2.) THE respondent is the Director of M/s. P.J. Steels (P) Ltd. The premises of M/s. P.J. Steels was visited by the revenue officer and it was found that there was certain shortage in their final product. Duty was demand from M/s. P.J. Steels (P) Ltd. and penalty of the equal amount was imposed on the firm and penalty of one lakh was imposed on the present respondent by the adjudicating authority on the ground that everything was in the knowledge of the present respondent, therefore, liable for penal action.

(3.) THE Commissioner (Appeals) set aside the penalty on the ground that there is nothing on record to prove that present respondent physically dealt with the goods found short. There is also no finding in the adjudication order that present respondent had dealt with excisable goods in any manner specifically contemplated under Rule 26 of the Central Excise Rules.