PENALTY UNDER RULE 26 OF C.EX. RULES 2002
CESTAT WEST ZONAL BENCH [SINGLE MEMBER] while deciding on 27.10.09 under Final order No. A642-644/09 in re: RAJARANI STEEL CASTING P. LTD vs CCEX NASIK, observed as follows:-
QUOTE: any person who aquires possession of or is in any way concerned in physically dealing with any excisable goods which, he knows of has reason to believe, are liable to confiscation under the Act or the Rules shall be liable to a penalty. For application of this rule, there must be a finding that certain excisable goods are liable to confiscation under the Central Excise Act or the Central Excise Rules and there must be a further finding that the person who is sought to be penalised has acquired possession of such goods or has otherwise physically dealt with the goods, knowing or believing that the goods are liable to confiscation. No finding of this sort is forthcoming in this case against the appellant. Even the show-cause notice did not allege that Shri Agarwal had removed the goods with the knowledge or belief that such goods were liable to confiscation under the Central Excise Act or the Central Excise Rules. In this scenario, the penalty imposed on the appellant under Rule 26 cannot be sustained. UNQUOTE
[for full text of the judgement please visit http://www.taxesinindia.com and click on the citation: taxind_2009_wzb_sm_A642_644]
CESTAT ORDERS
VENKATRAMAN RAGGHUPATHY, Web admin.
