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2013 (7) TMI 827 - AT - Central ExciseClandestine removal – The respondent paid the disputed amount of duty as mentioned in the show cause notice along with interest and 25% of the duty amount as penalty within 30 days of the show cause notice as per the provision of Section 11A(1A) - Penal proceedings against other noticees were dropped in view of Section 11A (1A) read with proviso to Section 11A(2) – Held that:- When the proceedings against the manufacturer/assessee stand concluded on payment of disputed amount of duty plus interest plus 25% of the duty as penalty, there would be no sense in continuing the proceedings for imposition of penalty under Rule 26 against other persons like traders who had purchased the goods, transporters who had transported the goods cleared by manufacturer/assessee, the Directors/employees of the manufacturer/assessee company – As per Tribunal in case of Shitala Prasad Sharma Vs. Commissioner of Central Excise, Mumbai-I, reported in [2004 (12) TMI 195 - CESTAT, MUMBAI] relying upon Apex Court’s judgment in case of D. P. Kothari reported in [2001 (3) TMI 183 - CEGAT, COURT NO. II, NEW DELHI] has held that when the matter has been settled by the settlement commission against the main party and settlement commission has granted immunity to him from penalty, the co-occured cannot be penalized under Rules, 209A of Central Excise Rules, 1944 as he cannot face a penalty greater than the penalty on the main accused – Decided in favor of assessee.
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