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2019 (9) TMI 396 - AT - Central ExciseImposition of penalties - penalties u/r 13 (1) of Cenvat Credit Rules - appellant have acted as mediator in arranging the cenvat credit or fraudulent rebate - HELD THAT:- The penalties on appellant Sh. Mahesh Harlalka and Sh. Deepak Nathmal Kedia were imposed under Rule 13 (1) of Cenvat Credit Rules, 2002 which can be imposed only on the person who availed the cenvat credit whereas in the present case, it is admitted fact that the appellant have only acted as mediator in arranging the cenvat credit or fraudulent rebate, therefore, penalties under Rules 13(1) is not relevant - the penalties imposed under Rule 13 (1) of Cenvat Credit Rules are set aside. Penalties u/r 27 - HELD THAT:- Since the appellant are neither manufacturer nor exporter, no contravention of the provision can be alleged against them, therefore, the penalty under Rule 27 is also set aside. Penalty under Section 117 of the Customs Act - HELD THAT:- Since the appellants were not involved either in the import or export of any goods, he cannot be alleged with the contravention of any provision of Customs Act, 1962, therefore, this penalty is also not maintainable, hence the same is set aside. Recovery of fraudulent availed rebate, interest and consequential penalty against proprietor of Sh. Sairam International - HELD THAT:- No proposal was made against Sh. Sairam International in the show cause notice, therefore, by way of review, the show cause notice cannot be amended or developed. Accordingly, the appeal of Revenue proposing something which is not arising out of the show cause notice cannot be maintained. Appeal allowed - decided in favor of appellant.
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