Penalty under Central Excise Rules cannot be imposed for non-payment of additional duty under the Sugar Export Promotion Act.

Rule 25 of the Central Excise Rules, 2002 does not authorise penalty for non-payment of additional duty under the Sugar Export Promotion Act, 1958. The Tribunal held that the penalty could not be sustained where the only basis for its imposition was that rule, as the rule did not cover the default in question. The penalty was therefore set aside.

---

---

Issues: Whether penalty could be imposed under Rule 25 of the Central Excise Rules, 2002 for non-payment of additional duty under the Sugar Export Promotion Act, 1958.

Analysis: The Tribunal found that Rule 25 of the Central Excise Rules, 2002 did not authorize imposition of penalty for non-payment of additional duty under the Sugar Export Promotion Act, 1958. As the penalty rested on that rule, the levy was unsustainable.

Conclusion: The penalty was set aside and the appeal was allowed.

---