COMMISSIONER OF CENTRAL EXCISE Vs. ASHOK FASHION LIMITED

JUDGEMENT

(1.) The Customs, Excise and Gold (Control) Appellate Tribunal, Mumbai has referred the following question of law to this High Court under section 35G(1) of the Central Excises and Salt Act, 1944 :

(2.) There was a raid conducted in the premises of the appellant by the officers of the department on 12th/13th February 1993 and a panchnama was drawn in respect of the proceedings undertaken during the raid. Thereafter, a showcause notice was issued on 11/05/1993 in respect of the violations of the provisions of the Act and the Rules and the appellant was called upon to pay duty of Rs.52,717=00 and also to show cause as to why penalty should not be levied under various Central Excise Rules mentioned therein.

(3.) The demand came to be confirmed by the Collector, which order was challenged before the Tribunal. The Tribunal found that the physical verification had been done by the panchas and that there was a statement recorded of the appellant's authorised signatory Dineshbhai Dahyabhai Shah accepting the mistake which had resulted in the breach of the provisions of the Central Excise Rules. The Tribunal found that the levy of duty was rightly made. As regards the penalty of Rs.10,000=00 imposed on the appellant under Rule 173Q (1) of the Central Excise Rules, 1944 by the Collector, Central Excise and Customs, under his order dated 8/08/1994, the Tribunal, placing reliance on the decision of the Delhi High Court in Pioneer Silk Mills v. Union of India, reported in 1996 (67) ECR 131, held that no such penalty could be levied. The appeal was, therefore, partly allowed in respect of the penalty imposed on the appellant, while confirming the demand of duty under the said order made by the Collector.