2006 (9) TMI 200 - HC - Central Excise

Court upholds Tribunal decision on penalty for non-accountal of excisable goods, emphasizing proof over suspicion.

The High Court dismissed the appeal under Section 35G of the Central Excise Act, 1944, regarding confiscation and penalty for non-accountal of excisable ... Penalty - Imposition of Issues involved: Appeal u/s 35G of Central Excise Act, 1944 against order of Customs, Excise and Service Tax Appellate Tribunal regarding confiscation and penalty for non-accountal of excisable goods.Summary:The adjudicating authority confiscated goods and imposed penalty based on non-entry of goods in register, suspecting evasion of excise duty. Commissioner reversed the decision citing explanations provided by the partner of the appellants. Tribunal upheld Commissioner's view. Revenue's counsel argued for mandatory penalty citing a Supreme Court judgment. However, the High Court disagreed, referencing precedents that penalty should be imposed only after establishing a case for it. The Court found no substantial question of law in the case and dismissed the appeal.