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2016 (12) TMI 654 - AT - Central ExciseImposition of redemption fine and penalties - job work - the main appellant is job worker of M/s Tafe Motors & Tractors Ltd. who is manufacturer of tractors and doing certain activity on job work basis. Under Notification No. 23/2004-CE. With effect from 09/07/2004 the tractor became duty free, therefore, the activity undertaken by main appellant became dutiable - Held that: - As admitted that no goods were available, therefore, I hold that redemption fine is not imposable on the appellant in the light of the decision of Larger Bench of this Tribunal in the case of Shiv Kripa Ispat Pvt. Ltd.[2009 (1) TMI 124 - CESTAT MUMBAI], where it was held that fine was not imposable when goods were allowed to be cleared. I have gone through the contents of the show cause notice, there is no allegation in the show cause notice of fraud, collusion, wilful mis-statement, suppression of fact or not paid the duty with an intend to evade payment of duty. In the absence of such elements, penalty is not imposable on the main appellant under Section 11AC of the Act. Further, I find that on co-appellants penalties have been imposed under Rule 26 of the Central Excise Rules, 2002. Admittedly penalty under Rule 26 can be imposed subject to the provisions of Section 11AC of the Act which are absent here. Therefore, penalties on all the appellants are not imposable - I set aside the imposition of redemption fine and penalty on all the appellants - appeal disposed off - decided in favor of appellant-assessee.
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