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2016 (11) TMI 990 - AT - Central ExciseLevy of penalty in the absence of confiscation - Invocation of Rule 26 and not sub-rule 2 of Rule 26 - Held that: - the issue regarding sub-rule (2) of Rule 26 raised by the learned Counsel is irrelevant as Rule 26 has been invoked and not sub-rule 2 of Rule 26. As regards non-imposition of penalty in case where there is no proposal for confiscation of goods, the Hon'ble Supreme Court in the case of Sanjay Vimalbhai Deora [2015 (1) TMI 537 - SUPREME COURT] has upheld the decision of Hon'ble High Court of Gujarat. In the said case, the Hon'ble Supreme Court had upheld the penalty under Rule 26 of the Central Excise Rules, 2002 even in case where there is no proposal for confiscation. The third contention raised by the appellant relates to invocation of provision of sub-section (2A) of Section 11A, I find that the said provisions can be invoked only in respect of such persons on whom notices are served under sub-section (1) of Section 11A. In this case, notice under Rule 26 of the Central Excise Rules, 2002 has been served to all the appellants. The penalties are reduced from ₹ 1 lakh to ₹ 75,000/- on Shri Mahendra K Agrawal, Manish R Agrawal & M/s Diamond Roadways and from ₹ 25,000/- to ₹ 20,000/- on Shri Ramavtar K Agrawal - appeal disposed off - decided against appellant.
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