Court Upheld Duty, Interest, Penalty on NBE Motors for Clandestine Removal 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 ...
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Court Upheld Duty, Interest, Penalty on NBE Motors for Clandestine Removal
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 only 25% of the penalty. A penalty of Rs. 25,000 was imposed on the Director, Shri Dipteshbhai Panchal, under Rule 26 of the Central Excise Rules. The penalty was reduced to Rs. 12,500 considering the company's payments. The appeal was rejected except for the penalty reduction, with the decision delivered by Member (Judicial) Mrs. Archana Wadhwa.
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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