2025 (2) TMI 142

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....epartment ORDER P.V. SUBBA RAO: 1. In these two appeals the order in original dated 24.11.2022 Impugned order passed by the Additional Director General (Adjudication) of DGGST is assailed. By this order, the Additional Director General decided the proposals made in the Show Cause Notice dated 06.04.2021 SCN issued to M/s Balaji Wire Pvt. Ltd. Balaji and to Mr. Arun Kumar Gupta Arun and to others. 2. The facts which led to the issue of the SCN are that the officers of DGCEI visited a residential flat in Delhi and seized documents and electronic data pertaining to six manufacturing units of the Bansal Group including Balaji. Arun is the Director of Balaji. Based on the seized documents, investigations were carried out and it was f....

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.... penalty amounting to Rs. 61,06,692/- may be appropriated towards the amount of duty confirmed in the impugned order. The consequence of such an appropriation would be that the amount of interest payable by Balaji would be reduced from Rs.1,41,96,003/- to Rs.1,14,37,004/-. The details of the duties, interest and penalty confirmed and appropriated are as follows: 1 Duty Confirmed in O-I-O Rs.5,32,85,623/- 2 Amt Deposited during investigation towards duty in 2017 Rs.4,07,11,279/- 3 Amt deposited during investigation towards interest in 2017 Rs.88,19,908/- 4 Balance amount of Central Excise duty (Rs.5,32,85,623/- -Rs.4,95,31,187/-) deposited in Nov. 2022 Rs.37,54,436/- 5 Total (2+3=4) (appropriated) ....

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....efunded to the appellant. 7. Learned authorized representative appearing for the department submitted that Balaji had deposited an amount of Rs. 61,06,692/- on 26.12.2017 under the head of 0038 0087-other receipts as penalty even before the issue of the show cause notice. After the impugned order was passed, Balaji deposited the balance amount of Rs.72,14,714/- as penalty. The total amount of Rs. 1,33,21,406/- meets the requirements of 25% penalty under section 11AC (i)(e) of the Excise Act. He submitted that the reduced penalty of 25% of duty is applicable only if the entire amount of duty, interest and 25% penalty was deposited within 30 days from the issue of the order of the central excise officer. The appellant Balaji fulfilled this....

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....enalty. 11. In view of the above, the appeal filed by Balaji deserves to be dismissed and is dismissed. 12. The appeal by Arun assails the penalty under Excise Rule 26 imposed on him. Although penalty was proposed under Excise Rules 26 and 27 it was actually imposed only under Excise Rule 26 read with section 174 (2) of the CGST Act, 2014. 13. Rule 26 of the excise rules reads as follows: "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 the....