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2019 (1) TMI 1377 - CESTAT MUMBAIPenalty u/r 25(1)(d) of the Central Excise Rules, 2002 - failure to export the goods cleared without payment of duty under bond for exportation - no suppression of facts - rule 19 of Central Excise Rules, 2002 - Held that:- It is an admitted fact that the goods were cleared after following due procedure in law and were after clearance stored in their godown located in Bhiwandi. From the Bhiwandi godown these goods were to be further transported for exportation from the relevant port. However, certain goods could not have been exported and proof of export in respect of some goods (ARE-1) were not submitted by the appellant within the prescribed time. Export under rule 19 of Central Excise Rules, 2002 is a well documented process. It cannot be the case of the department that the appellant had clandestinely cleared the goods for exportation from their manufacturing unit. These goods have been cleared after following due process and preparation of relevant documents. The export should have been properly accounted for and properly monitored by the Revenue also. In case of delay in submission of proof of export, Revenue itself should have asked for recovery of duty in terms of the bond executed. In case they have failed to monitor the submission of proof of export, the appellant cannot be saddled with the responsibility of suppression of fact. The penalty under Rule 25(1)(d) would be imposable but not equivalent to the amount of duty short paid - Since the provisions of section 11AC are not attracted in the present case, in our view, the ends of justice will be met if the penalty imposed is reduced to ₹ 5,00,000/-. The appeal of the appellant partly allowed to the extent of reduction of penalty to ₹ 5,00,000/-.
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