1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION CENTRAL EXCISE APPEAL NO.204 OF 2007 The Commissioner of Central Excise, Thane-I. ..Appellant. V/s. M/s. Gold Wood Ply Industries P. Ltd. ..Respondents. Mr.Vijay Kantharia with Mr.J.B.Mishra for Appellant. Mr.Kunal Damle with Mr.R.Ravindran for Respondents. CORAM : F.I. REBELLO & A.M. KHANWILKAR, JJ. DATED : OCTOBER 7, 2009 P.C. : 1. Appeal was admitted on following question of law: “Whether the Hon’ble CESTAT exceeded its jurisdiction by reducing redemption fine and penalty without assigning any reason and in spite of holding that the excess goods found in the factory have been rightly confiscated and penalty has been rightly imposed upon Respondents ?” 2. The Deputy Commissioner after rejecting the explanation offered by the Respondents passed an order of confiscation and also penalty. The Respondents aggrieved preferred an appeal before the Commissioner (Appeals). The various contentions raised on behalf of the Respondents were rejected and consequently, the appeal was dismissed for the reasons recorded in the order.. 2 3. The Respondents aggrieved preferred an appeal before the Customs, Excise and Service Tax Appellate Tribunal. The learned CESTAT confirmed the finding recorded by the Deputy Commissioner and the Commissioner(Appeals), however, reduced the amount of fine and penalty. It is this order which is the subject matter of the present appeal. 4. There is no dispute that there was discretion in the Tribunal to reduce the amount of fine and penalty. The discretion however, has to be exercised by giving reasons, which are germane to that exercise. In the instant case, we find no reasons have been recorded for reducing either the amount of fine or the penalty. This would amount to total non-application of mind on the part of the Tribunal. Consequently, the impugned order is set aside and the order of Commissioner(Appeals) and Deputy Commissioner is restored. Appeal accordingly, allowed. (A.M. KHANWILKAR,J.) (F.I. REBELLO,J.)