STATE OF GUJARAT Vs. MULJIBHAI VALAJIBHAI PATEL

JUDGEMENT

(1.) This reference at the instance of the Commissioner of Central Excise, raises following question of law.

(2.) Heard the learned Central Government Counsel appearing for the applicant. The learned counsel has invited attention to the decision of this Court as well as Apex Court in the following cases; (i) Jaybharat Fabric Mills Ltd. & Ors. vs. Union of India reported in 2003(2) GLR 999; & (ii) Collector of Central Excise, Ahmedabad vs. Orient Fabrics Pvt. Ltd., reported in 2003 AIR SCW 6529 (S.C.) to submit that the view taken by the Tribunal is in consonance with the law laid down by this Court as well as by the Apex Court in the aforesaid two decisions.

(3.) In light of the aforesaid position, it is not necessary to set out the facts and contentions in detail. Suffice it to state that the levy of penalty and confiscation/redemption fine under the provisions of Central Excise Act, 1944 by applying the provisions of Section 3(3) of the Additional Excise Duty Act, is bad in law. The question referred is, therefore, answered in the affirmative, that is, in favour of the respondent assessee and against the revenue.