Tribunal grants appeal due to Director's illness, waiver of penalty, and stay of recovery.

The Appellate Tribunal CESTAT MUMBAI granted condonation of delay in filing the appeal due to the Director's illness and allowed the appeal to proceed. The Tribunal found that the penalty imposed on the high-seas seller under Rule 26 of the Central Excise Rules, 2002 was not applicable as the seller was not dealing with excisable goods. Consequently, the Tribunal granted a waiver from pre-deposit of the penalty and stayed its recovery during the appeal process.

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Issues involved:
1. Condonation of delay in filing appeal.
2. Imposition of penalty under Rule 26 of the Central Excise Rules, 2002 on a high-seas seller.
3. Prima facie case for waiver from pre-deposit of penalty.

Condonation of delay in filing appeal:
The appellant sought condonation of a 20-day delay in filing the appeal due to the Director's illness, supported by a medical certificate. The Tribunal, considering the satisfactory reason provided, condoned the delay and allowed the appeal to be admitted.

Imposition of penalty under Rule 26 on high-seas seller:
The appellant, a high-seas seller, was penalized for his role in availing ineligible credit. The appellant argued that as a high-seas seller not dealing with excisable goods, the penalty under Rule 26 of the Central Excise Rules, 2002, as it stood in 2003, did not apply. The appellant cited a Tribunal order granting stay against penalties on high-seas sellers. The Revenue sought time for defense. The Tribunal found the issue straightforward, questioning the imposition of penalty on a high-seas seller not handling excisable goods under Rule 26. It noted that the rule, as of 2003, did not allow for such penalties. Consequently, the Tribunal granted waiver from pre-deposit of the penalty and stayed its recovery during the appeal.

This judgment from the Appellate Tribunal CESTAT MUMBAI dealt with issues related to the condonation of delay in filing the appeal and the imposition of a penalty under Rule 26 of the Central Excise Rules, 2002 on a high-seas seller. The Tribunal, after considering the reasons for the delay provided by the appellant, condoned the delay and allowed the appeal to proceed. Regarding the penalty imposed on the high-seas seller, the Tribunal analyzed the applicability of Rule 26 in 2003 and found that the rule did not cover penalties for individuals not handling excisable goods. As a result, the Tribunal granted a waiver from pre-deposit of the penalty and stayed its recovery during the appeal process.

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