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MTC Business Pvt. Ltd. Versus Commissioner of Customs, Mumbai

2016 (2) TMI 587 - CESTAT MUMBAI

Penalties imposed under the provisions of Rule 26(2) of the Central Excise Rules 2002 - appellants herein have issued invoices for the scrap purchased from manufacturing industries and passed on the Cenvat credit of duty but factually they have only delivered the market scrap to the recipients - Held that:- As find from a specimen Invoice No. 2857 of 29-9-2007 the, delivery challan issued by the main appellant is clearly indicates that goods “waste and scrap” are “non-excisable goods” and the de .....

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icates that the appellant did not supply the inputs as mentioned in the duty paying documents. In view of the above find that both the appellants have not made out any case in their favour. The main appellant being a Pvt. Ltd. has been penalized under Rule 26(2) of Central Excise Rules, 2002 and the penalty needs to be upheld, while the 2nd appellant Shri Lalit Inderchand Baliya being a Director is also penalized under the same Rule. The penalty imposed on the 2nd appellant is unwarranted. In th .....

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t Order-in-Appeal No. PUN-EXCUS-002-APP-099 & 100/13-14, dated 9-10-2013. 2. Heard both sides and perused the records. 3. On perusal of the records, it transpires that the issue involved in these two appeals is regarding the penalties imposed by the adjudicating authority and upheld by the first appellate authority though the first appellate authority has reduced the penalties on both the appellants. The penalties are imposed under the provisions of Rule 26(2) of the Central Excise .....

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were doubted by the lower authorities. He would submit that the statements relied upon by both the lower authorities do not implicate the appellants as having supplied market scrap. He would rely upon the statements of Shri Shivgovind Pandey, Director of M/s. Indian Steel and M/s. Jai Ambe Multi Trade Pvt. Ltd. and Shri Lalit Inderchand Baliya, Director of M/s. MTC Business Pvt. Ltd. to submit that the records very clearly indicate that they had supplied the material based upon the visual inspe .....

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ious confessional statements recorded by the authorities indicate that the appellant had knowledge of non-supply of the goods/inputs as indicated on the tax invoices and what was delivered was market scrap, he also recorded that transport documents for receipt and supply of scrap, payments made by cheques to the dealers was not available on records nor the appellant had argued on these points. 6.1 I find that the first appellate authority in his impugned order in para 12.1 has recorded the .....

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without recordings any findings for imposing maximum penalty. I find that there is nothing on record to indicate that the appellants are a repeated offender, in which case imposition of maximum penalty was justified. Looking into the circumstances of the case and the fact that only nine consignments are involved, the amount of penalty imposed of the highest limit as laid down under Rule 26(2) of C.E. Rules is excessive and needs to be reconsidered. It can be seen from the above reproduced findi .....

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