Arijit Pasayat, J. - (1.) The Commissioner of Central Excise, Bombay calls in question the legality of the order passed by the Customs Excise and Gold (Control) Appellate Tribunal, Delhi (hereinafter referred to as the CEGAT) quashing the order in original dated 21-5-1993 passed by the Collector Central Excise Bombay - III (in short the Collector).
(2.) Background facts giving rise to the present appeal are as follows:
(3.) A show-cause notice dated 28/29-10-1985 was issued to the respondent alleging short payment of duty on account of non-disclosure of 126.66 MTs. of production of Polyster Filament Yarn (in short POY) in the RG-I register and removal without payment of duty thereon. The short payment was stated to be Rs.1,06,07,775/-. Similarly, another allegation related to removal of 5.65 MTs. of POY without payment of Rs.4,75,187.50/-. Though there were several charges only two of them namely charge Nos. (iv) and (v) relating to the aforesaid allegations were confirmed. The collector confirmed the demand of duty of Rs. 1,06,07,775/- raised in para (iv) of the impugned show cause notice. He also confirmed the demand of duty raised under para (v) of the said show-cause notice to the extent of Rs.2,99,406.25/-. He imposed penalty of Rs.25,00,000/- under Rule 173Q of the Central Excise Rules, 1944 (in short the Rules) besides ordering for confiscation of the land, building, plant, machinery etc. used in connection with the offending goods in respect of which the demand of duty had been confirmed above. However, he has granted to the assessee an option to pay a fine of Rs. 10,00,000/- in lieu of confiscation.;