https://www.taxtmi.com/caselaws?id=154947 Penalty under Rule 26 of the Central Excise Rules, 2001 was found unsustainable where naphtha was received during the transition from the Central Excise Rules, 1944 and the recipient manufacturer was otherwise entitled to duty-free procurement for fertiliser manufacture. The recipient had substantially followed the earlier Chapter X procedure, the goods were warehoused by Central Excise officers, and there was no allegation of collusion or deliberate evasion. Any deficiency in documentation or procedure was treated as technical and, if at all, attributable to the despatching side rather than the receiving manufacturer. On those facts, penalty against the assessee was not justified. en-us Tue, 10 Nov 2009 00:00:00 +0530 Fri, 30 Aug 2013 15:24:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=154947 Penalty under Rule 26 of the Central Excise Rules, 2001 was found unsustainable where naphtha was received during the transition from the Central Excise Rules, 1944 and the recipient manufacturer was otherwise entitled to duty-free procurement for fertiliser manufacture. The recipient had substantially followed the earlier Chapter X procedure, the goods were warehoused by Central Excise officers, and there was no allegation of collusion or deliberate evasion. Any deficiency in documentation or procedure was treated as technical and, if at all, attributable to the despatching side rather than the receiving manufacturer. On those facts, penalty against the assessee was not justified. Case-Laws Central Excise Tue, 10 Nov 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=154947