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CESTAT allowed the appeal, setting aside penalty orders under Rule 26 of Central Excise Rules, 2002. The tribunal found the department's objection regarding pending high court proceedings unmeritorious, referencing a prior similar case. The appellants' area-based exemption claim was challenged, but the tribunal determined the penalty imposition was legally unsustainable. The decision effectively nullified the penalty imposed for inadmissible refund claims related to non-manufactured goods, providing relief to the appellants based on procedural and substantive legal grounds.
CESTAT allowed the appeal, setting aside penalty orders under Rule 26 of Central Excise Rules, 2002. The tribunal found the department's objection regarding pending high court proceedings unmeritorious, referencing a prior similar case. The appellants' area-based exemption claim was challenged, but the tribunal determined the penalty imposition was legally unsustainable. The decision effectively nullified the penalty imposed for inadmissible refund claims related to non-manufactured goods, providing relief to the appellants based on procedural and substantive legal grounds.
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