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of <h1>Appeal successful: Penalties overturned for discovery of needles and cannulae under Customs Act.</h1> <h3>Jamal Haider Siddiqui Versus CCE., Allahabad</h3> Jamal Haider Siddiqui Versus CCE., Allahabad - TMI Issues:- Appeal against impugned order passed by Commissioner (Appeals) regarding penalty imposed under Customs Act and Central Excise Rules.Analysis:The judgment delivered by the Appellate Tribunal CESTAT, NEW DELHI involved an appeal filed by the appellant against the impugned order passed by the Commissioner (Appeals). The case revolved around the discovery of needles and cannulae during a search conducted by Revenue officers at the factory where the appellant was employed. The Revenue alleged that the needles were manufactured, while the cannulae were smuggled into India. The adjudicating authority confirmed the demand for the needles and ordered the confiscation of the cannulae, imposing a penalty of Rs.2 lakhs on the appellant under Section 112 of the Customs Act read with Rule 209 of the Central Excise Rules, 1944. The appellant then filed an appeal before the Commissioner (Appeals), who reduced the penalty to Rs.50,000.Regarding the penalty under the Customs Act, Hi-Tech Needles (P) Ltd. and the Managing Director filed an appeal before the Tribunal. The Tribunal, in its order dated 11.1.2012, set aside the confiscation of cannulae, redemption fine, and penalties. The Tribunal found that the penalty imposed under Section 112 of the Customs Act was not sustainable in light of the earlier order. Additionally, the Tribunal analyzed the penalty imposed under Rule 209 of the Central Excise Rules, 1944. It was observed that Rule 209 applies to manufacturers, producers, or registered dealers in case of contravention of any provisions of the Rules. Considering that the appellant was an employee of Hi-Tech Needles (P) Ltd. working under the direction of the Managing Director, the Tribunal concluded that the penalty imposed under Rule 209 was also not sustainable and, therefore, set it aside. Consequently, the appeal was allowed, and the penalties under both the Customs Act and the Central Excise Rules were overturned.
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