2018 (4) TMI 1453

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.... of small scale exemption to the respondent and have also set-aside the penalty on the Director, Revenue has filed the present two appeals. 2. After hearing both the sides and on going through the impugned order, it is find that the Commissioner (Appeals) has upheld the allegation of clandestine removal of goods worth Rs. 1,41,27,730/-. However, he has observed that the respondents are entitled to small scale exemption upto a limit of Rs. One Crore during the relevant period, in terms of Notification No. 8/2003-CE and has accordingly directed the respondents to pay duty on the balance amount of Rs. 41,27,730/-. 3. As such, a short question required to be decided in the present appeals of the Revenue is, as to whether the benefit of sm....

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....nder Singh Member (Technical)   Archana Wadhwa Member (Judicial)   PER: DEVENDER SINGH 6. Having gone through the draft order prepared by Ld. Member (Judicial), I write a separate order. 7. While I agree with the Ld. Member (Judicial) on the issue of allowing the benefit of small scale exemption even when there is finding of clandestine removal, on the issue of imposition of penalty on Shri Pritpal Singh, the Director, I am not in agreement with the view expressed by the Ld. Member (Judicial). The adjudicating authority has imposed penalty of Rs. 10 lakhs on the Director under Rule 26 of Central Excise Rules, 2002. I find that the charge of clandestine removal without any kind of records and bills against t....

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....stine removal has taken place with full knowledge and under the overall supervision of Shri Pritpal Singh, Director. Therefore, I hold that the penalty under Rule 26 is imposable on Shri Pritpal Singh, Director. However, considering the quantum of evasion involved in this case, I am of the view that ends of justice would be met if the penalty imposed on Shri Pritpal Singh, Director is reduced to Rs. 5 lakh. Accordingly, the appeal of the Revenue is partly allowed. (DEVENDER SINGH) MEMBER (TECHNICAL) 10. In view of difference of opinion emerging between the Hon'ble Members on the issue of imposition of penalty on Shri Pritpal Singh, Director, the Registrar is directed to place the matter before the Hon'ble President for nominating t....