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2015 (1) TMI 585 - AT - Central ExciseImposition of penalty u/s 11AC - Bogus invoices - invoices were allegedly issued without ever supplying any goods - Held that:- appellants have conceded that the invoices were issued without ever supplying any goods. As regards their contention that the order of Settlement Commission in respect of M/s. Talbros would cover them too, it is seen that the Settlement Commission itself did not admit their case and such non-admission was not on the ground that they would be covered by the main order in case of Talbros. The judgement in the case in K.I. International Ltd. (2013 (5) TMI 383 - CESTAT, CHENNAI) takes note of the judgement in the case of S.K. Colombowala (2007 (7) TMI 514 - CESTAT, MUMBAI) and holds that the benefit of the Settlement Commission s order cannot be extended to those who never approached the Settlement Commission. The ld. Advocate stated that the order in case of K.I. International Ltd. has been stayed by the High Court, but I find that the stay is an interim stay on condition of 50% deposit and bank guarantee for the remaining amount which obviously means that what has been stayed is the consequential recoveries in terms of that order. As stated earlier, the Settlement Commission itself did not consider that the appellants would be covered by their order in case Talbros. As such, the contention of the appellants in this regard is not sustainable. In the light of the foregoing the appellants contention that they are not liable to penalty under Rule 25 ibid is untenable - reduction to 25% of duty involved, under Section 11AC ibid is subject to several conditions. Further in the case of the appellants, the fraud committed is deliberate and blatant and involved manipulation of documents. In fact, I find no mitigating factors in this case to justify lower penalty. - Decided against assesse.
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