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2010 (11) TMI 322 - AT - Central ExcisePenalties on respondents-dealers - The party was a manufacturer on paper - The transactions between the manufacturer and the respondents-dealers, are only paper transactions without actual movement of goods - As there are no goods, question of rendering any goods liable for confiscation does not arise - By notification No. 8/2007 dated 1-3-07 issue of such invoices without supply of the goods also attract penal provisions - Prior to that, there is no provision for imposing penalty for merely dealing with the invoices. Held that: where a person merely arranges modvatable document to the manufacturer without actual delivery of goods, penalty could not be imposed under Rule 209A - Rule 26(2) of Central Excise Rules, 2002 prior to amendment on 1-3-2007 is akin to Rule 209A - Hence, the appeals by the Department are rejected.
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