2008 (7) TMI 426

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bunal has committed substantial error of law in setting aside the personal penalty imposed under Rule 209-A of the Central Excise Rules, 1944 though the Respondent had knowingly concerned himself in fraudulent acts in contravention of provisions of the rules and dealt with goods which are held liable to confiscation under Rule 173Q of the Rules?" 2. It appears that, against the Limited Company, wherein the assessee is serving as Manager, certain proceedings were taken and as a consequence, after drawing of a panchnama on 16/17-12-1998, statement of respondent-assessee was recorded on 17-12-1998 under Section 14 of the Central Excise Act, 1944. After issuing a consolidated notice, the adjudicating authority made an Order-in-Original on 31st....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tated that they are not very much aware that about the provisions to be followed and on being pointed out by the authorities reversed/debited the amounts. This itself would show that the officers had no knowledge of the Central Excise law. In view of this, I find that penalties imposed on these two officers under the provisions of Rule 209A is unwarranted and is liable to be set aside and I do so." 4. The learned counsel for the appellant has read extensively from the show cause notice issued to the Company and its employees and also invited attention to the findings recorded by the adjudicating authority. It was submitted that, in case of the Company, Tax Appeal No. 1041 of 2007 has been admitted on the following questions : "(a) Whether....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....unt or take irregular Modvat credit or take credit towards excess duty paid. On being pointed out, they have suo motu reversed the 10% Modvat credit amounting to Rs. 2,09,313/- towards inputs sent to the processor for job-work, reversed the credit of Rs. 98,745/- taken towards excess duty paid and have also paid up the interest amounting to Rs. 1,26,488/- on the overdrawn PLA account. (6) The lapses can at best be treated as inadvertent errors and procedural infractions, which need to be excused and condoned." 7. The impugned order of Tribunal is a consolidated order in relation to the appeals of the Company and the employees, wherein it has been held : (i) Insofar as the demand of Rs. 4,63,095/- is concerned, that the said demand under ....