KAIZEN PLASTOMOULD PVT. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this Writ Petition under Article 226 of the Constitution of India the petitioner challenges the order passed by the revisional authority dated 12.3.2012 dismissing the Revision Application filed by the present petitioner. The Revision Applicant challenged the order dated 1.9.2009 of the Commissioner of Central Excise (Appeals) Mumbai Zone -I. The Commissioner of Central Excise (Appeals) was dealing with four orders in original, three orders passed by the Assistant Commissioner of Central Excise, Bhayandar, Division Thane -II and another by a distinct Assistant Commissioner. The case of the present petitioner was that their goods are exempted. The petitioners were issued show cause notices demanding duty in respect of the export consignment cleared for which proof of exemption was not allegedly submitted in time. The other allegation is that in one of the cases excisable goods were removed without payment of duty under cover of invalid letter of undertaking (LUT). The original authority consequently confirmed the demand of duty by orders referred to by the revisional authority and also imposed a penalty on the petitioners.

(2.) THE imposition of the penalty and confirmation of duty was questioned before the Commissioner of Central Excise (Appeals) and who proceeded to reject it.

(3.) MR . Shah appearing on behalf of the petitioners would submit that the authorities have committed basic and fundamental error in rejecting the request of the present petitioners and confirming the allegations in the show cause notice. Mr. Shah would submit that one can understand the insistence on production of proof of exports. However, one cannot understand insistence of production of certain documents alone as holding that they alone constitute the proof. When there is proof of exports in the form of contemporaneous documents, then, non -production of ARE -1's should not result in the petitioners being called upon to pay duty and equally penalty. There is nothing fallacious or erroneous much less lacking in bonafides, because a exporter is not producing the ARE.