Penalty under Central Excise rules where confiscation was not alleged in the notice became a substantial question of law.

Penalty under Rule 209A of the erstwhile Central Excise Rules, 1944, now Rule 26 of the Central Excise Rules, 2001, was questioned on the basis that the show cause notice did not allege confiscation of goods. The Bombay High Court admitted the appeal on the substantial question of law and deferred consideration of interim relief. The document highlights the legal issue of whether a penalty can be sustained in the absence of an allegation of confiscation in the notice, without stating any final determination on merits.

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Issues: Whether penalty could be imposed under Rule 209A of the erstwhile Central Excise Rules, 1944, now Rule 26 of the Central Excise Rules, 2001, when confiscation of goods was not alleged in the show cause notice.

Outcome: The appeal was admitted on the substantial question of law and the prayer for interim relief was adjourned.

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