2008 (2) TMI 772

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..... per : Jyoti Balasundaram, Vice-President]. The brief facts of the case are that, the respondents herein who are merchant manufacturers, supplied grey fabrics to one M/s. Oceana Textile Mills Pvt. Ltd. to carry out the processing on job work basis and return of the processed fabrics to the respondents. On the basis of intelligence gathered that the actual price of grey fabrics was not includ .....

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..... e confiscation of the goods. Before the Commissioner (Appeals), the respondents challenged the imposition of penalty on the ground that the provisions of Rule 209A under which penalty was imposed upon them were not attracted as they had no knowledge of reasonable belief that the goods which they were dealing with were undervalued. The plea was accepted by the lower Appellate Authority. Hence the a .....

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..... n the actual costing of grey fabrics manufactured by the respondents in their own factory. He has also held that it is also not disputed that the quality of the grey fabrics manufactured by the respondents and those purchased by them were the same. He has therefore, held that when the cost of grey fabrics declared by the respondents was otherwise correct then it is a matter of interpretation of th .....

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