2012 (6) TMI 557

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.... The Revenue has preferred this appeal challenging the order passed by the Tribunal holding imposition of penalty under Rule 26 of the Central Excise Rules, 2002 is improper and the penalty is payable only under Rule 27 of the above Rules, that is, a penalty of Rs. 5000/- only. 2. During the course of scrutiny of TR.6 challans by the Accountant General's audit Party. It was noticed that payment....

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....w cause why penalty should not be imposed u/s. 11 AC of the Central Excise Act, 1944. The further addendum to the show cause notice was issued calling upon the Assessee to show cause why penalty should not be imposed on the Director for the Assessee Company under Rule 26 of the Central Excise Rules, 2002. The same was replied to denying the liability to pay the penalty. 3. However, the adjudica....

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....ertain 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 rupee....

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.... the aforesaid provision. 10. In the instant case, admittedly no excisable goods are confiscated. The offence alleged against these respondents is, they were not diligent in seeing that the cheques issued towards payment of the excise duty were whether encashed or not. Therefore, the said offence does not fall under Rule 26 of the Excise Rules. 11. Rule 27 reads as under: "27. General pen....