PRAKASH B. BAGRECHA Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE above appeal arises out of the order of the Commissioner of Central Excise, Ahmedabad, who has inter alia confirmed duty demands on processor of grey fabrics and imposed penalties on the processor as well as others. The appellant herein is the procurer of grey fabrics from the open market who then sends such fabrics to M/s. Singhal Silk Mills for processing and gets them back after processing. Penalty has been imposed upon the appellant in terms of Rule 209A of the Central Excise Rules as he was dealing in excisable goods which he knew were non duty paid and therefore were liable to confiscation. In other words, the provisions of Rule 209A have been held to be attracted against the appellants on the ground of their dealing in goods which were liable to confiscation with the knowledge that such goods were liable to confiscation.

(2.) WE have heard both sides.

(3.) THE appeal is thus partly allowed as above.