R. Sudhakar, J.

1. This Civil Miscellaneous Appeal filed by the Revenue as against the order of the Customs, Excise and Service Tax Appellate Tribunal allowing the appeal filed by the assessee was admitted by this Court on the following substantial question of law:

"Is the learned Appellate Tribunal correct in setting aside the penalty imposed by the Commissioner of Customs when admittedly the respondent has omitted to do an act or at least abetted in such omission under Section 114 of the Customs Act and as such liable to pay penalty under Section 114 of the Act?"

2. The brief facts are as follows:

On 10.3.1998, the Officers of Customs Preventive Division, Tuticorin searched the godown at No.111, Ettayapuram Road, Tuticorin and found rows of cartons stacked in. Three persons were also seen there. On enquiry, one person identified himself as Nathan of Trichy and stated that he employed other two persons, namely, Selvaraj and Kalkan for packing the goods. The Officers found 476 cartons in the godown, out of which 419 of them containing sandalwood and 57 containing roofing tiles