2012 (10) TMI 4

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....facts of the case are that a case was booked against Sapna group of companies by the offices of the Directorate General of Anti Evasion (Central Excise), Zonal Unit, Mumbai for supply of parts of Refrigerator and Air-conditioner to the appellants by availing the exemption Notification No. 75/87. The Notification No. 75/87 exempts refrigerators and air-conditioners and parts thereof if produced by small scale units and prescribed rate of duty on slabs up to the limit of Rs. 15 lakhs during a financial year was NIL. The proceedings initiated against the Sapna group of companies were culminated in settlement before the Settlement Commission. The proposals for imposition of penalty against the appellants were initiated vide show-cause notice No....

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....ants is not sustainable. In support of his contention, he has also placed reliance on the decision of Hon'ble High Court of Bombay in the case of Hindustan Steel Ltd. v. Commissioner of Central Excise - 1978 (2) E.L.T. J159 (Bom.) (sic), wherein it was held that when there is no mens rea involved, penalty is not imposable. 5. Learned SDR Shri Y.K. Agarwal submitted that Rule 209A of the Central Excise Rules, 1944 provides that a person who is in any way concerned in purchasing the excisable goods, which he knows or he has reason to believe that the goods are liable to confiscation, penalty is imposable. In his endeavor, he taken me to para 22 of the Order-in-Original, wherein it is recorded that M/s. Neha Regrigeration is a fictitio....

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.... goods received from M/s. Neha Refrigeration and Sapna group of companies are liable for confiscation, the penalties are imposable on the appellants. 6. I have considered the submissions and perused the records. Penalty the appellants has been imposed under Rule 209A of the Central Excise Rules, 1944, which read as under :- "Penalty for certain offences. - 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 ten thousa....