2009 (1) TMI 573

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..... e Respondent. [Order per : Jyoti Balasundaram, Vice-President]. -  The respondents herein are engaged in the process of dyeing and colour fixing on fabrics, with the aid of steam in respect of colour fixing of certain colours. Show-cause notice demanding duty of Rs. 4,68,852/- (BED) and Rs. 2,93,033/- (AED) and proposing imposition of penalty was issued on the ground that the processes carr .....

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..... also reduced the penalty u/s 11AC to Rs. 96,408/-. The Revenue is aggrieved by the scaling down of the duty demand while the assessee has preferred cross-objection against the imposition of penalty. 2. We have heard both sides. We find that the Commissioner (Appeals) has relied upon the statement of Shri C. Palanisamy, partner of the assessee, that steam was used in the processing for certa .....

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..... 11AC is not warranted and the goods were very much inside the factory and no attempt to remove them clandestinely has been established by the Revenue. We therefore set aside the penalty as reduced by the Commissioner (Appeals). 5. In the result the appeal of the Revenue is rejected and the cross-objection filed by the assessee is allowed. (Dictated and pronounced in open court)
Case law .....

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