UNION OF INDIA Vs. SUNCITY SYNTHETICS LTD

JUDGEMENT

(1.) THIS application under Section 35H of the Central Excise Act, 1944, is filed by the Union of India seeking direction to Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as 'the CEGAT') to refer the question of law as set out in para No. 8 of form No. E.A. 6 under Rule 8 for the opinion of this Court.

(2.) THE fact giving rise to the application are that respondent M/s. Suncity Synthetics Limited is engaged in manufacture of plastic chips. On 19 -12 -1997 the Revenue Authorities visited the premises of the factory and found that 3713 Kgs. of final product was short as compared to their statutory record. Thus, duty was imposed amounting to Rs. 55,695/ -. A penalty was also imposed of the equal amount in accordance with provisions of Section 11AC of the Central Excise Act, 1944. The Tribunal impressed with the contention that the shortage was found because of calculation error and reduced the penalty to the sum of Rs.15,000/ -.

(3.) IN view of this, we are satisfied that a referable question of law arises from the order of the Tribunal.