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2020 (2) TMI 1198 - AT - Central ExciseImposition of penalty u/r 26 of the Central Excise Rules, 2002 - no opportunity was given to cross-examine Riyaz Siddiqui despite the fact that mainly by relying upon his statement only, show cause notice was issued to them - principles of natural justice - HELD THAT:- The learned Commissioner has not recorded any finding that either of the Appellants had the knowledge or had a reason to believe that the goods were liable to be confiscated which is sine qua non for imposing penalty under Rule 26. Rule 26 pre-supposes the existence of knowledge or reason to believe that the goods are liable to be confiscated under the Central Excise Act or the Rules therein. As there is no finding in the impugned order to that effect, hence the imposition of penalty on the Appellants under Rule 26 is illegal and improper. Therefore, the impugned order did not bring out the existence of required ingredients attracting the provisions of the said rule. Penalty on Suhel Roadlines - Suhel Roadlines has been penalized mainly on the basis of the statement of its proprietor Riyaz Siddiqui - HELD THAT:- Due to the non-cooperation of the said Riyaz Siddiqui the proceedings before the lower authority gets delayed. Before the Tribunal also the conduct of the said Riyaz Siddiqui is not appreciable. Although appeal has been filed on behalf of his proprietorship concern Suhel Roalines but nobody appeared to assist at the time of hearing. The plea of cross-examination of Riyaz Siddiqui, which is available to other Appellants and due to which the matter was earlier remanded by the Tribunal on 13.4.2012, is not available to M/s. Suhel Roadlines as the said Riyaz Siddiqui is its proprietor - thus, no case has been made out by Suhel Roadlines- Appellant. Appeal allowed - decided in favor of appellant.
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