2009 (3) TMI 850

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.... duty. The factory manager, in his statement dated 21-2-2006 recorded under Section 14 of the Central Excise Act, confessed to clandestine removal of M.S. bars (goods in question) of different sizes valued at Rs. 2,04,679/- to one M/s. Hari Om Steels on 6-2-2006. He also paid duty on the goods. In a subsequent show-cause notice, the jurisdictional Assistant Commissioner proposed, inter alia, to confiscate the above goods under Rule 25 of the Central Excise Rules, 2002 and to impose penalty on the party under Section 11AC of the Act read with Rule 25. In adjudication of the show-cause notice, the Assistant Commissioner ordered confiscation of the goods under Rule 25(1)(d) and a fine of Rs. 40,000/- was imposed in lieu of confiscation, apart ....

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....akash M. Patel was aware of the non-duty-paid character of the subject goods which were purchased under cover of a chit from M/s. Shiv Kripa Ispat Pvt. Ltd. It was on this basis that the relevant show-cause notice proposed to penalise Mr. Prakash M. Patel under Rule 26, which stipulated that any person who acquired possession of, or was in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner dealt with, any excisable goods which, he knew or had reason to believe, were liable to confiscation under the Act or the Rules, shall be liable to a penalty not exceeding the duty on such goods or rupees ten thousand, whichever is greater. In adjudication of the notice, the original....