2002 (11) TMI 145 - AT - Central Excise

Summary

Issues involved: Appeal against imposition of penalty u/r 209A of Central Excise Rules, 1944.

Summary:
The appellant contested a penalty of Rs. 20,000 imposed under Rule 209A of the Central Excise Rules, 1944, claiming it was illegal. The appellant argued that there was no evidence of dealing with excisable goods as specified under Rule 209A. The department alleged that the appellant facilitated illegal availment of Modvat credit by transferring gate passes. However, the Tribunal found that Rule 209A could not be invoked as there was no evidence of the appellant dealing with excisable goods. Additionally, Rule 210 was not applicable as there was no specific violation of Central Excise Rules by the appellant. Therefore, the Tribunal set aside the penalty and allowed the appeal.