2009 (8) TMI 877 - AT - Central Excise

Penalty Upheld for Removal of Goods Without Paying Central Excise Duty

The Appellate Tribunal CESTAT, Ahmedabad, in 2009 dismissed M/s. Shree Pramukh Industries Pvt. Limited's appeal for non-compliance with a stay order. Shri ... Penalty - Personal penalty - Clandestine removal, abetment The judgment was made by Ms. Archana Wadhwa at the Appellate Tribunal CESTAT, Ahmedabad, in 2009. The case involved M/s. Shree Pramukh Industries Pvt. Limited and Shri Rajnibhai C. Parikh. The Tribunal dismissed the appeal of M/s. Shree Pramukh Industries Pvt. Limited due to non-compliance with a stay order to deposit 25% of the penalties. In the case of Shri Rajnibhai C. Parikh, a penalty of Rs. 20,000 was imposed for his involvement in the removal of modavatable goods from the factory premises of M/s. Shree Pramukh Industries Pvt. Limited. The penalty was based on statements made by Shri Rajnibhai C. Parikh, which confirmed the clandestine removal of goods without payment of Central Excise duty. The advocate for the appellants argued that Shri Rajnibhai C. Parikh was not an active director of the company, but subsequent statements contradicted this claim. The tribunal found the penalty imposed on Shri Rajnibhai C. Parikh to be reasonable and rejected his appeal. Both appeals were disposed of on August 4, 2009.