COMMISSIONER CUSTOMS Vs. WEBBING AND BELTING PVT LTD

JUDGEMENT

(1.) We have heard Shri Ashok Singh for the appellant and Shri Sharad Malviya for the respondent-assessee.

(2.) This Central Excise Appeal under Section 35-G of the Central Excise Act, 1944 arises out of an order passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (the Tribunal) dated 25.6.2004 dismissing the appeal and confirming the order of the Commissioner of Appeals, by which he had set aside the penalty levied on the respondents in view of the judgment of Madras High Court in Beauty Dyers v. Union of India & Ors.,2002 52 RLT 636 (Mad.).

(3.) The facts giving rise to this appeal filed by the Commissioner, Customs and Central Excise are that M/s Webbing and Belting Pvt. Ltd. (the respondent company) is engaged in the processing of fabrics under Chapter Heading No.52 & 54 of CETA 1985. The respondents were working under the compounded levy Scheme as per the provisions of Notification No.43/98 dated 10.12.1998, as amended during the period April 1999 to February 2001. The annual capacity of production was fixed provisionally by the Commissioner, Central Excise, Meerut vide order dated 17.3.99/3.5.99 and finally on 8.3.2001.