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2010 (1) TMI 403 - AT - Central ExcisePenalty- The original authority, in a case involving demand of duty of Rs. 16,821/- against M/s. Jai Hind Bidi Co. besides confirming the demand of duty and interest imposed penalty of Rs. 16,821/- under Section 11AC on the said firm and in addition, imposed a penalty of Rs. 2,000/- on Shri Mohd. Islam, proprietor of M/s. Jai Hind Bidi Co. under Rule 26 of Central Excise Rules, 2002. He also imposed penalty of Rs. 2000/- on Shri Govind Das authorised signatory of M/s. Jai Hind Bidi Co. under Rule 26 of Central Excise Rules, 2002. Held that-The Larger Bench of the Tribunal in the case of C.C.E., Bhopal v. Rama Wood Craft (P) Ltd. 2008 -TMI - 49056 - CESTAT, PRINCIPAL BENCH, NEW DELHI has held that there is no minimum prescribed in Rule 25 of Central Excise Rules, 2002 while interpreting the words “shall be liable to penalty not exceeding duty on the excisable goods .......... or rupees ten thousand whichever is greater”. The wordings in relation to quantum of duty in Rule 26 is also identical. Therefore, it is clear that there is no minimum penalty prescribed under Rule 26 of the Central Excise Rules.
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