TaxTMI 
TaxTMI 
2010 (9) TMI 371
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....hat there is no provision under Central Excise Act or Rules made thereunder and the provisions of Section 132 of Customs Act, 1962 in particular ignoring the specific mention by the Adjudicating Authority that the Rule 209 A of Central Excise Rules, 1944 does provide penalties for such likes of offences under rule 209A of the Central Excise Rule 1944? The Facts : 2. The factual matrix giving rise to the aforesaid question of law has its birth in the show cause notice dated 19th September, 1995 issued to the respondents calling upon them to show cause as to why modvat credit taken by them in the sum of Rs. 24,31,436.55 and penalty imposed in the sum of Rs. 50,000/on each of the respondents should not be confirmed. The said show cause n....
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....sable and goods liable to confiscation under Rule 209A are only excisable goods and only handling such goods would call for penalty under the rule. 4. Being aggrieved by the aforesaid order of the Tribunal, appellate jurisdiction of this Court under section 35G of the Act is invoked by the appellantRevenue. Rival Submissions : 5. Mr.Jetly, learned counsel appearing for the appellantRevenue urged that the findings recorded by the Tribunal are not only erroneous but contrary to the law and procedure. In his submission, rule 209A of the Central 4 cexa-18.06.sxw Excise Rules, 1994 ("Rules" for short) provides for certain offences and, hence, by setting aside the penalty the Tribunal has exceeded its jurisdiction. According to him, under r....
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....is without any substance. Consideration : 7. Having heard learned counsel for the appellantRevenue and Mr.Sanklecha as Amicus Curie, it is necessary to turn to rule 209A, which reads as under: "Rule 209A. Penalty for certain of fences. Any person who acquires possession of, or is any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to confiscation under the Act or these rules, shall be liable to a penalty not exceeding three times the value of such goods or five thousand rupees, whichever is greater." The sine qua non for a penalty on any person under the above rule is: either he has....
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....onsonance with the legislative change. In the Central Excise Rules, 1944, rule 26 came to enacted which came in force with effect from 1st March, 2007. Rule 26 reads as under: Rule 26. Penalty for certain offences. (1)Any person who acquires possession of, or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to confiscation under the Act or these rules, shall be liable to a penalty not exceeding the duty on such goods or two thousand rupees, which ever is greater. (2) Any person, who issues( i) an excise duty invoice without delivery of the goods specified therein or abets i....