TaxTMI 
TaxTMI 
2014 (8) TMI 289
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....ts. Facts of the case are that a case was booked against M/s. Rajvi Petrochem Pvt. Ltd., Surat for clandestine manufacturing and clearance of Partially Oriented Yarn (POY). Some of the clandestinely cleared POY was sold to M/s. Deep Twisters Pvt. Ltd. (main appellant) without payment of duty and without containing any documents. Shri Pankesh S. Patel, Director of the main appellant in his statement dt. 27.01.2004 admitted that main appellant have received 6051.990 Kgs. of POY valued at Rs. 3,93,379/- from M/s. Rajvi Petrochem Pvt. Ltd. for purchasing POY without any documents and without any payment of duty. Penalties were imposed by the adjudicating authority under OIO No.159/DC-MAM/OA/2009, dt. 25.01.2010 upon the main appellant under Rul....
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....wal [2009 (234) ELT 215 (Guj.)], (viii) Kamlesh Kumar Goel Vs. CCE, Thane-II [2008 (223) ELT 65 (Tri. - Mumbai)], (ix) CCE & ST, Daman Vs. J.J. Polyplast Ltd. [2010 (252) ELT 511 (Guj.)]. 2.1 Regarding imposition of penalty upon the Director of the main appellant it was argued by the Ld. Advocate that in the OIO dt. 25.01.2010, it is nowhere mentioned that the goods handled by the appellants were liable to confiscation. In the absence of such an allegation either in the show cause notice or in the OIO no penalty can be imposed upon the Director of the main appellant in view of the following case laws: &nb....
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....ollows: RULE 25. CONFISCATION AND PENALTY: (1) Subject to the provisions of section 11AC of the Act, if any producer, manufacturer, registered person of a warehouse or a registered dealer, - (a) removes any excisable goods in contravention of any of the provisions of these rules or the notifications issued under these rules; or (b) does not account for any excisable goods produced or manufactured or stored by him; or (c) engages in the manufacture, production or storage of any excisable goods without having applied for the registration certificate required under section 6 of the Act; or (d) contravenes any of the provisions of these rules or the notifications issued under these rules with intent to evade payment of duty, then, all su....
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....pon Shri Pankesh S. Patel, Director is concerned, it is seen from the statement dt. 27.01.2004 of Shri Pankesh S. Patel, Director of the main appellant that he was aware of the fact that the goods purchased by the appellants were without the cover of a central excise invoice and without payment of central excise duty on cash payment basis. It was also stated by him that appellant is a unit registered with the central excise department in Olpad Division, Surat-II and engaged in manufacture of polyester crimp yarn / twisted yarn for which POY is the main raw material. Shri Pankesh S. Patel, Director of the main appellant is representing the unit registered with the central excise department and was aware that the goods (POY) purchased by them....