VINOD GOEL, J.

1. Challenge in this writ petition is to order dated 08.10.2007 passed by the Central Administrative Tribunal (in short ‘the Tribunal) in O.A No. 2850/2005 whereby the Tribunal set aside the penalty imposed on the respondent by the Disciplinary Authority vide order dated 21.04.2005 of reduction of pay by two stages from Rs.8,700 to Rs.8,300 in the pay scale of Rs.6500-10500 w.e.f. 01.05.2005 for a period of two years during which he was to earn no increment of pay.

2. Brief facts leading to the filing of the present petition are that the respondent while posted as Inspector at the Indira Gandhi International Airport, Delhi gave a false examination report in respect of Bill of Entry No. 724870 dated 21.12.1998 filed by M/s Intertrade Incorporated, Noida declaring the imported goods to be ‘Plastic Buttons’ valued at Rs.56,531/- whereas on verification the packet was found to be intact and in its original packing. Goods on examination were found to be cellular phones along with batteries and chargers valued at Rs.74,80,000/-. The respondent was asked to show why a penalty under Section 17 of the Customs Act, 1962 should not be imposed on him. Prior to this show