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2017 (12) TMI 540 - AT - Central ExcisePenalty - only case of Revenue is that M/s. Sanmati Steel Pvt. Ltd. as per the specifications of railway for manufacture of ERC were required to use a particular grede of rounds wherein it appeared that other than the said particular grade of rounds, they have also purchased some other rounds from the appellant - whether the learned Commissioner (Appeals) have rightly retained the penalty of Rupees One lakh imposed u/r 25 of CER, 2002 on Daga Trading Company and ₹ 50,000/- as penalty u/r 26 of CER, 2002. on its Director Shri Ramesh Kumar Daga? - Held that: - the whole case of Revenue was made on the presumption that M/s. Sanmati Steel Pvt. Ltd. was requiring a particular grade of rounds as per requirement of its buyer – Railways. As the appellants herein have sold them rounds, which also includes some other grade of rounds, the whole transaction is presumed fictitious and accordingly penalty are being imposed on the appellants. Penalty on Director U/R 26 - Held that: - Although it has been admitted by the Director of M/s. Sanmati Steel Pvt. Ltd. Mr Vinod Kumar Jain that he have indulged in procuring other goods other than specified by Railways from Daga Trading Company but it is not the case of the Director of M/s. Sanmati Steel Pvt. Ltd. that they have not received goods from M/s. Daga Trading Company - the allegation against the appellants do not stand established and thus no elements of penalty are established, under the provisions of Rule 25 of Rule 26 against these appellants. Appeal allowed - decided in favor of appellant.
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