COMMISSIONER OF CENTRAL EXCISE Vs. JAI PRAKASH MOTWANI

JUDGEMENT

(1.) THE Appellant -Revenue is in appeal against the order dated 5 -6 -2007 rendered in a group of appeals by proposing the following question of law.

(2.) FOR the purpose of the present appeal, the impugned order of the Tribunal, made in Appeal No. C/1546/05, insofar as it deals with the imposition of penalty upon the Respondent, who is the partner of the Assessee -firm is relevant, and the discussion is, therefore, being confined to this aspect only, in keeping with the proposed question.

(3.) BRIEFLY stated, the background facts are that M/s. Associate Plastics and Rayons, a 100% Export Oriented Unit (EOU), is engaged in the manufacture of man -made grey fabrics and Polyester Texturised Yarn (PTY). The officers of the Appellant visited the office of the Respondent -assessee on 25 -8 -2003 and upon physical verification of the stock, noticed a shortfall of 18900.00 kgs. of imported PTY. Various statements were recorded under the relevant provisions of the Customs Act, 1962. and show cause notice dated 29 -1 -2004 was issued. The Adjudicating Authority held the Assessee liable for payment of duty and also imposed penalty upon the Respondent, who is one of the partners in the firm. In appeal, the appellate authority upheld the Order -in -Original, regarding imposition of penalty. The matter was carried before the Tribunal by the Respondent, by filing an appeal, which was registered as Appeal No. C/1546/2005, against imposition of penalty under Section 112(b) of the Customs Act, 1962. The appeal has been allowed by impugned order.