2026 (3) TMI 347

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....ng Mills Ltd. and certain private records were seized which purportedly revealed that the respondent was involved in the clandestine purchase of 2977.68 MT of Raw Material (structural items) amounting to Rs.14,22,72,347/- from the said supplier during 01-02-2012 to 31-12-2012, without valid Central Excise invoices and a statement of Shri Kuntal Pramanik, Planning Assistant of the respondent was recorded. 2.1 On the basis of that, a show-cause notice dated 17.10.2017 was issued to the respondent for imposition of penalty under Rule 26(1) of the Central Excise Rules, 2002 on the respondent. 2.2 The adjudicating authority imposed penalty under Rule 26(1) of the Central Excise Rules, 2002 on the respondent, but on appeal, the ld.Commissio....

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....ule 26(2) of the Central Excise Rules, 2002 is extracted below:- "RULE 26. Penalty for certain offences. - ... (2) Any person, who issues - (i) an excise duty invoice without delivery of the goods specified therein or abets in making such invoice; or (ii) any other document or abets in making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made thereunder like claiming of CENVAT credit under the CENVAT Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater." 9.2. As per the said Rule, any pers....

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....Larger Bench of this Tribunal in the case of Steel Tubes of India Ltd. (supra) has examined the said issue and observed as under: - "9. As regards the second issue in reference it can be noticed that the Rule 209A pre-supposes a knowledge as to the liability of the confiscation of the goods which being transported etc. It was argued extensively by the authorized representative for the department that the expression "Any person" would include any company or association or body of individual, whether incorporated or not. Reliance was also placed on the definition of the word person in Section 3(42) of The General Clauses Act, 1897, for this proposition. Undoubtedly the expression "Any person" would include a natural and unnatural per....

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....ave to be booked on the basis of duty paying documents) and the goods are seized by the authorities at the destination point, can the Indian Railways be penalized under the provisions of Rule 209A of the Central Excise Rules, 1944? The resounding answer would be "NO" as Indian Railways is not having any knowledge that the goods so booked are liable for confiscation. The booking clerk is in knowledge and hence he is liable to be penalized under the said Rule 209A. Accordingly, we find that the conclusion reached by the Tribunal in the case of Indian Roadways Corporation Ltd. (supra) is also correct and does not require any reconsideration." 10.3. We further take note of the fact that the issue has also been examined by this Tribunal....