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2024 (2) TMI 497 - AT - Central ExciseLevy of personal penalty on the director under Rule 26 of CER - short payment of duty - appellant is a co-noticee and the main noticee i.e. Company M/s. Span Nihon Kohden Diagnostics Private Limited has settled their case under SVLDR Scheme - HELD THAT:- The penalty on the appellant being the director of the company was imposed under Rule 26 of Central Excise Rules, 2002 in connection with the case of short payment of duty by M/s. Span Nihon Kohden Diagnostics Private Limited. It is found that the case against the main notice i.e., the company is related to valuation of the goods. The allegation against the company is that the company has not paid the duty correctly and the goods were sold to the related person. The issue of valuation is based on the strict interpretation of Section 4 of the Central Excise Act and the rules made thereunder. However, the appellant under a belief that since the goods are sold, duty is paid on the transaction value, for the clearance of goods proper invoices were raised, therefore, there is no suppression of fact on the part of the appellant’s company. The case is based on only interpretation of valuation provision of Central Excise. Therefore, it cannot be said that the director of the company has any mala fide intention. In this fact, the personal penalty on the director is not correct and legal. The penalty under Rule 26 is set aside and appeal is allowed.
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