2026 (3) TMI 12

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....STIAN: The issue in the present appeal is regarding penalty on the Respondent Shri. M.C Lokesh, Assistant Manager and Shri. Aravind Sekhar, Director of M/s Sai Security Printers., Ltd. 2. The brief facts are alleging that some of the products manufactured by M/s. Sai Security Printers Pvt., Ltd., were wrongly classified by the Respondent for evasion of central excise duty, proceedings were initiated and show cause notice dated 06.07.2016 was issued to M/s. Sai Security Printers Pvt. Ltd., and respondents were directed to show cause as to why penalty under Rule 26 of the Central Excise Rules, 2002 should not be imposed on them. Thereafter Adjudication Authority as per the Order-in-Original dated 31.01.2017 classified the goods under Ch....

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....r booklets and bank passbooks would come within the scope of Chapter Subheading 4820 and all other forms would go under Chapter Subheading 4901/4911 as mentioned under the said Circular. Needless to say that Circular is binding on the department, hence, the learned Commissioner ought to have considered the said Circular and decided the issue, accordingly. In the result, the impugned order is modified and the matter is remanded to the adjudicating authority to re-quantify the demand considering the classification of bank passbooks, university answer booklets falling under Chapter Subheading 4820 and remaining all other forms classifiable under Chapter Subheading 4901/4911. Since the learned Commissioner has not addressed the issue of limitat....

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....pose of further writing or printing and as such they were liable to be classified under Chapter 4820 of the Central Excise Tariff Act, 1985 as per Note 12 and Note 14 to Chapter 48 of the Central Excise Tariff Act, 1985. However, they have resorted to clandestine clearance of the goods manufactured by them. Thus, it appears that they have concerned themselves with clearance of excisable goods without payment of central excise duty leading to evasion of Central Excise duty by M/s. SSPPL and thereby it appears that they are liable for penalty under Rule 26 of Central Excise Rules, 2002." 5. Heard both sides and perused the records. 6. As regards the classification of goods and penalty on manufacturer M/s. Sai Security Printers Pvt., Ltd....