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2016 (8) TMI 577 - AT - Central ExciseImposition of penalties - Rule 209A of Central Excise Rules, 1944 - clandestie removal of goods - various dummy/benami firms created - obtained hire purchase finance from various finance companies fraudulently - huge quantity of machinery, structurals etc. were shown accounted for in the books which were not available with M/s.Kedia Distilleries - Held that:- Appellant (Shri S.K.Batra) is one of the person alleged to be involved in scheming the financial fraud by acting as a proprietor of one of the dummy units which purported to have supplied machinery to the main party. Since, the financial fraud is admitted fact, other than this, the role of appellant in excise duty evasion is not explained in the impugned order. When companies are dummy and transactions are only book entries the penalty under excise rules cannot be justified. any. Similarly for second appellant (Kedia Castle Dellon Industries) also , the allegation of their involvement in any excise duty evasion has not been explained with evidence in the impugned order. As discussed earlier, we are dealing with mainly non-exiting machinery, created by book entries as part of financial fraud and some manufacture done by contractors. The role of appellant in the excise duty evasion has to be indicated and evidenced independently. Therefore, in the absence of coherent evidence to this effect the penalties imposed on appellants are not sustainable. - Decided in favour of appellant
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