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2015 (11) TMI 40 - AT - Central ExciseEvasion of duty - Penalty under Rule 26 for abetment - Held that:- Rule 26 speaks about imposition of penalty in the case where a person has knowledge or reason to believe that the goods are liable for confiscation. There are no documents or record to establish that the appellant had knowledge that M/s.B.S.Enterprises was evading duty. M/s.B.S.Enterprises sold goods to M/s.G & D Incorporation from where the appellants procured the products. Some of the G&D brand footwears were above ₹ 250/- and were excisable goods. The Commissioner (Appeals) has vaguely concluded that the appellant has abetted the omission and commission of act in contravention of provision of Central Excise Act and has proceeded to impose penalty. The participation of the appellant firm is not established by cogent evidence. There is no evidence to link the appellant firm with the clandestine activities of M/s.B.S.Enterprises. Penalty was imposed upon the partner Shri Virender Kumar which was paid by him. Shri Virender Kumar did not file appeal. - evidence placed and the judicial decisions, the penalty of ₹ 80,000/- imposed on the appellant under Rule 26 is unsustainable and the same is set aside. Taking into consideration, the argument of the learned counsel for appellant that after abatement the duty liability of the seized goods would only come to ₹ 21,365/-, the levy of redemption fine of ₹ 80,000/- in my view, is on the higher side - Decided partly in favour of assessee.
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