TaxTMI 
TaxTMI 
2026 (3) TMI 736
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....ed the demand of excise duty amounting to Rs. 59,79,077/- under Section 11A of Central Excise Act along with interest in terms of Section 11AA of the Act, and also imposed equal penalty under Rule 25 of Central Excise Rules, 2002. The learned Commissioner has also imposed penalty of Rs. 5000 under Section 27 of Central Excise Rules, 2002. 2. Briefly the facts of the present case are that the appellant is engaged in the manufacture of Readymade Garments and had cleared the same for export in terms of Rule 19 of erstwhile Central Excise Rules, 2002 under the General Bond B-1 executed by them and duly accepted by the Deputy Commissioner Central Excise Division-1, Ludhiana. The export of the excisable goods was allowed without payment of Cen....
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....] of the impugned order and had not been exported and the appellant had contravened the provisions of Rule 19 of Rules 2002 and Notification No.42/CE(NT) and instructions contained in Chapter 7 of CBEC's Excise Manual of Supplementary Instructions, 2005. On these allegations, a show cause notice dated 06.08.2012 proposing to demand Central Excise duty in respect of the goods cleared under 16 ARE-1 and charge interest under Section 11AA of the Act. In reply to the show cause notice, the appellant submits that the goods cleared under all involved ARE-1, had been duly exported within the period of six months on the date of clearance from the factory premises and there is no justification in demanding the Central Excise Duty and imposing pe....
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....ng Authority has reported that the Customs Officer had not certified in Part-B of all the ARE-1 that goods had been exported. This finding as per the learned counsel is not factually correct rather the custom officer had duly signed and stamped the Part-B of all the ARE-1, when produced before him along with all the shipping bills which shows that he had certified the export of goods. Even if he has not mentioned the shipping bills number etc. in Part-B of ARE-1, it does not mean that goods had not been exported when the particulars given in ARE-1s tally with the particulars of relevant shipping bills. 4.2 He further submits that ARE-1 number, Excise invoice number, commercial Invoice number, description and quantity of goods, value in I....
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.... 4.4 As regards the imposition of penalty, learned counsel submits that penalty cannot be imposed once the appellant has exported the goods and placed on record the document showing proof of export. He further submits that when the appellant has not contravened the provision of Rule 19 and Notification No. 42/2001, hence, no penalty is imposable as held by the Hon'ble Tribunal in the case of : (i) ISMT Ltd. Vs. UOI - 2016 (338) ELT 356(Bom.) (ii) Eves Fashions Vs. Commissioner of C.Ex. Delhi-1 reported as 2006 (205) ELT 619 (Tri.-Del). 5. On the other hand, learned Authorized Representative for the Revenue, reiterated the findings of the impugned order and submits that the learned Commissioner has rightly confirmed the demand as ....
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....ed order stating that goods have been duly exported and in proof of the same, the appellant has produced all the documents, but the adjudicating authority has not considered the documents produced by the appellant in right perspective and has only relied upon the report submitted by the Custom Officer. 7. We also find that the appellant has produced before us a chart showing details of ARE-1 and other export documents proving that the goods have been exported which prima facie shows that the goods in fact have been exported. Further we find that the Custom Officer has duly signed and stamped part B of all the ARE-1 when produced before him along with all the shipping bills which clearly shows that he has certified the export of goods eve....