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2018 (10) TMI 535 - AT - Central ExcisePenalty u/r 25 or 26 of CER - Mentioning wrong rule number - SSI Exemption - use of brand name of others - Demand based on statement of Shri Murali Krishna, Director of M/s Sada Healthcare Products Pvt. Ltd. - opportunity of being heard - principles of natural justice - scope of SCN - SCN proposed imposition of penalty under Rule 26 whereas the Order-in-Original has imposed the penalty under Rule 25 of Central Excise Rules, 2002 - Held that:- The appellant was never given an opportunity to defend themselves against imposition of penalty under Rule 25 and therefore the penalty needs to be set aside on this ground alone. The first appellate authority was not correct in holding that mentioning Rule 25 was a typographical error and the intention was to impose penalty under Rule 26, because in para 15 of the Order-in-Original, the lower authority has discussed as to why penalty is liable to be imposed under rule 25, both on M/s Sada Healthcare Products Pvt. Ltd. and the appellant herein. Penalty u/r 25 - Held that:- Penalty under rule 25 can be imposed on any producer, manufacturer, registered person of a Warehouse or a registered dealer for various contraventions. It is not the allegation in the show cause notice that the appellant is the manufacturer - penalty u/r 25 set aside. Penalty u/r 26 - Held that:- Penalty u/r 26 is imposable on any person who acquires possession of or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing or dealing in any other manner with any excisable goods which he knows or has reason to believe are liable to confiscation - Show cause notice does not bring out any facts which can support the allegation of both involvement of the appellant in any of the aforesaid activities nor the intention to do so except for the uncorroborated statement by the Director of M/s Sada Healthcare Products Pvt. Ltd. - penalty u/r 26 set aside. Appeal allowed - decided in favor of appellant.
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