COMMISSIONER OF CENTRAL EXCISE Vs. FIBRE FOILS LTD

JUDGEMENT

(1.) Appeal was admitted on the following question:

(2.) A few facts may be set out:

(3.) The Respondent aggrieved preferred an appeal before the Commissioner (Appeals) of Central Excise and Customs. By order dated 20th March, 2001 the learned Appellate Authority in para.6 was pleased to hold that the A.O. Was right in confirming the demand of duty and imposition of penalty for such shortages in raw materials. The respondent aggrieved preferred an appeal before CESTAT. The learned CESTAT held that the monetary penalty under Rule 57-I(4) equivalent to duty made cannot be upheld since no reasons to maintain the same at the level of mandatory 100% have been arrived by the authorities. The learned Tribunal, therefore, found that the penalty of Rs. 25,000/-to be sufficient. It is this order which is the subject matter.