https://www.taxtmi.com/caselaws?id=775005 CESTAT Ahmedabad dismissed the appeal challenging penalty imposed under Rule 26 of Central Excise Rules, 2002 on a GPA holder. The appellant was involved in a scheme to evade customs and central excise duty by diverting finished goods from a 100% EOU to domestic market without duty payment. Despite multiple opportunities for personal hearing, appellant failed to respond. The tribunal found the GPA holder actively participated in creating fraudulent export documents and paper trails to defraud the government. A Memorandum of Understanding dated 22.11.2001 established appellant's beneficial interest and involvement in the unit's operations. The tribunal rejected arguments that the MOU was invalid, holding it constituted valid evidence of appellant's role. The Commissioner correctly determined that appellant, along with other co-conspirators, was liable for penalty under Rule 26 for facilitating duty evasion through forged export documentation and clandestine clearance of goods. en-us Wed, 16 Jul 2025 00:00:00 +0530 Fri, 18 Jul 2025 08:22:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775005 CESTAT Ahmedabad dismissed the appeal challenging penalty imposed under Rule 26 of Central Excise Rules, 2002 on a GPA holder. The appellant was involved in a scheme to evade customs and central excise duty by diverting finished goods from a 100% EOU to domestic market without duty payment. Despite multiple opportunities for personal hearing, appellant failed to respond. The tribunal found the GPA holder actively participated in creating fraudulent export documents and paper trails to defraud the government. A Memorandum of Understanding dated 22.11.2001 established appellant's beneficial interest and involvement in the unit's operations. The tribunal rejected arguments that the MOU was invalid, holding it constituted valid evidence of appellant's role. The Commissioner correctly determined that appellant, along with other co-conspirators, was liable for penalty under Rule 26 for facilitating duty evasion through forged export documentation and clandestine clearance of goods. Case-Laws Central Excise Wed, 16 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775005