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of <h1>Court Upheld Duty, Interest, Penalty on NBE Motors for Clandestine Removal</h1> The court confirmed duty, interest, and penalty against M/s. NBE Motors Pvt. Limited for clandestine removal. The company had paid duty and interest but ... Penalty - clandestine removal - the appellants submits that duty confirmed against M/s. NBE Motors Pvt. Limited already stands deposited by them along with interest and 25% of penalty - Held that:- The said penalty stands imposed on Shri Dipteshbhai Panchal, in terms of the provisions of Rule 26 of the Central Excise Rules on the findings of clandestine removal by the manufacturing unit, M/s. NBE Motors. The said unit has accepted the fact of clandestine removal - The appellant being the Director of the unit is liable to penalty under Rule 26 of Central Excise Rules - reduce the penalty amount from Rs. 25,000/- to Rs. 12,500/-. But for the above modification in the quantum of penalty amount, the appeal is otherwise rejected. Issues:1. Confirmation of duty, interest, and penalty against M/s. NBE Motors Pvt. Limited.2. Imposition of penalty on Director of M/s. NBE Motors Pvt. Limited.Analysis:1. The appellant, represented by an advocate, did not contest the duty, interest, and penalty confirmed against M/s. NBE Motors Pvt. Limited for clandestine removal. The duty and interest were already deposited by the company along with 25% of the penalty. The advocate acknowledged the confirmation of duty, interest, and penalty.2. A penalty of Rs. 25,000 was imposed on the Director of M/s. NBE Motors Pvt. Limited, Shri Dipteshbhai Panchal. Although he accepted liability for the penalty, he requested a reduction based on the circumstances of the case. The penalty was imposed under Rule 26 of the Central Excise Rules due to clandestine removal by the manufacturing unit. The unit admitted to the clandestine removal, making the Director liable for the penalty. The Director requested a lenient view considering that the company had already paid the duty, interest, and a portion of the penalty.3. The Member (Judicial) reduced the penalty amount from Rs. 25,000 to Rs. 12,500, taking into account the deposit made by M/s. NBE Motors Pvt. Limited towards duty, interest, and part of the penalty. The appeal was rejected except for the modification in the quantum of the penalty amount. The decision was dictated and pronounced in court by the Hon'ble Mrs. Archana Wadhwa, Member (Judicial).
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