9911796707
TMI Blog2025 (3) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... der Rule 26 of Central Excise Rule, 2002 for the omission on the part of the company in mis-declaring the goods manufactured by them. 2. The facts in brief are the Appellant was the Managing Director of M/s. Ruchi Soya Industries Ltd., (now M/s. Patanjali Foods Ltd. herein after referred as 'the company'), who are engaged in manufacture of refined edible oils. The goods manufactured by the company 'RBD Palm Stearin' were cleared classifying under Chapter Sub Heading 15119090 of the Central Excise Tariff Act, 1985 without payment of central excise duty by claiming the benefit of Notification No. 3/2006-CE dated 01.03.2006. Alleging mis-declaration of the goods for availing the benefit of Notification No. 3/2006-CE dated 01.03.2006, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no evidence brought out on the record by the Revenue against the appellant herein indicating his personal involvement in the alleged mis-declaration and clearance of goods by company in order to evade excise duty. Hence, imposition of penalty under Rule 26 of the Central Excise Rules, 2002 is completely based on the assumptions and presumptions. Merely, if the appellant was the Managing Director of the company, he has not got any role in the date-to-day affairs of the company for imposing penalty under Rule 26 of the Central Excise Rules, 2002. The learned counsel further submits that once the appeal filed by the company has already been abated under the Rule 22 of CESTAT Procedure Rule, 1982 and it's a liability stands extinguished, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor requested not to insist for his personal appearance. I find that the above replies of M/s. Ruchi Soya cannot be accepted as logical because, while the day-to-day clearances of goods and payment of Central Excise duty may be looked after at the unit level based on established procedures/orders of the management but the primary decision on classification of goods manufactured and payment or other-wise of Central Excise duty has to be decided by the Management of the company. Managing Director by virtue of Section 2 (26) of the Companies Act, 1962, is entrusted with substantial powers of management which would not be otherwise exercisable by him. He is also vested with functions of control, direction, policy determination and superintende ..... X X X X Extracts X X X X X X X X Extracts X X X X
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