2006 (10) TMI 146 - CESTAT, NEW DELHI [LB]

Penalty - Rule 209A - when goods not available for confiscation - Rule 26 of Central Excise Rules, 2002 - Meaning of Any person for the purpose of penalty - held that - for imposition of penalty under Rule 209A of the Central Excise Rules, 1944, the person must have dealt with the excisable goods with knowledge that they are liable for confiscation. In a given situation, where an assessee is only issuing invoices wherein there is no movement of the goods, they cannot be visited with penalty under Rule 209A - In the eyes of law, the corporate entity being a person would be held responsible for the act of the natural persons. But in order to punish the guilty individuals, the veil of corporate entity had to be lifted to understand the correct picture. Precisely for these reasons only the provisions of Rule 209A came in to statute, in order to punish the guilty acting behind the veil of corporation/company - penalty can not imposed on corporates under rule 209 / Rule 26 of the Central Excise Rules, 2002