2000 (8) TMI 751

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....which confirmed the duty demand of Rs. 4,83,159/-, imposed a penalty of Rs. 40,000/- on M/s. G.M.I. Engineering Ltd., Calcutta and dropped penal proceedings against the Managing Director Shri Sushil Kumar Ghorawat. 2. The main allegation against the respondent M/s. G.M.I. Engineering Ltd. was two fold. Firstly, they were alleged to have removed 5 numbers Electronic Weighing Machines and 31 Numbers Gold Testing Machines and 11 Numbers Diamond Testing Machines, totally valued at Rs. 10,30,200/- from the factory to their registered office without payment of the appropriate central excise duty of Rs. 80,391/-. Secondly, they were alleged to have indulged in clandestine removal of the unaccounted Electronic Weighing Scales, totally valued ....

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....ify the wrong done under mistake" and shows their "sense of equity and good conscience". It, therefore, was of the opinion that, although there was a case of confirmation of the duty, "penalty should be cautionary in nature as against retributive." 2.3. Although penal proceedings initiated against Shri Sushil Kumar Ghorawat u/r 209A of the CEA, 1944, the adjudicating authority refrained from imposing any penalty on him on the ground that there was no evidence on record to show that he had any knowledge or had reason to believe that the impugned goods were liable to confiscation and as such there was no mala fide interntion to evade payment of duty. Hence, no penalty was imposed on him, However, this aspect has not been touched upon in....