https://www.taxtmi.com/caselaws?id=106910 Penalty under Rule 209A of the Central Excise Rules, 1944 was found unsustainable because the surrounding facts did not support a finding that the assessee or its employee knew, or had reason to believe, that the gases were liable to confiscation. A written contract for the gas plant existed from the inception of the unit, the assessee consistently maintained that the plant was taken on rent and installed in its premises, and an earlier departmental adjudication had accepted exemption eligibility. The gases were also industrial inputs, and Modvat credit would have neutralised the duty burden. On these facts, the penalty on the employee also could not survive. en-us Wed, 13 Nov 2002 00:00:00 +0530 Fri, 16 Mar 2012 12:43:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106910 Penalty under Rule 209A of the Central Excise Rules, 1944 was found unsustainable because the surrounding facts did not support a finding that the assessee or its employee knew, or had reason to believe, that the gases were liable to confiscation. A written contract for the gas plant existed from the inception of the unit, the assessee consistently maintained that the plant was taken on rent and installed in its premises, and an earlier departmental adjudication had accepted exemption eligibility. The gases were also industrial inputs, and Modvat credit would have neutralised the duty burden. On these facts, the penalty on the employee also could not survive. Case-Laws Central Excise Wed, 13 Nov 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106910