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2014 (10) TMI 234 - AT - Central ExciseImposition of penalty - appellant did not follow the procedures prescribed for procurement of motor spirit for blending with ethyl alcohol - Held that:- Rule 25 provides for imposition of penalty in certain situations specified therein and subject to the provisions Section 11AC of the Central Excise Act, 1944. In the present case, by dropping the demand for Central Excise duty, it is accepted that the assessee has discharged duty liability correctly. If that is so, question of violating any provisions of law would not arise at all - Tribunal’s Larger Bench in the case of Godrej Soaps v. Commissioner of Central Excise, Mumbai [2004 (10) TMI 112 - CESTAT, MUMBAI] has held that when the demand gets dropped on any account, penal provisions cannot survive against the assessee, and for the same reason, confiscation of the goods, which is penal nature, cannot be upheld. Similar views have been taken in various judicial pronouncements relied upon by the counsel for the appellant. Therefore, we are of the view that penalty under Rule 25 of the Central Excise Rules, 2002 cannot be imposed on the appellant for the alleged violation of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 - Decided in favour of assessee.
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