2005 (2) TMI 605 - AT - Central Excise

Summary

Issues: Imposition of penalty under Rule 25 of Central Excise Rules for exporting goods without following correct procedure of Executing Bond.

Analysis:
1. The case involved the imposition of a penalty of Rs. 25,000 on the appellant under Rule 25 of the Central Excise Rules for allegedly exporting goods without following the correct procedure of Executing Bond. The appellant argued that the export took place before the supplementary instructions of September 2001 were issued by the Central Board of Excise & Customs. The appellant had cleared the export goods using the ARE-1 form signed by the jurisdictional Central Excise Officer, providing full disclosure of the procedure followed. The learned Counsel contended that since the goods were exported and the proof of export was accepted by the Revenue, the penalty imposition was unjustified.

2. The export of the goods was done under a document approved by the Central Excise authorities, and it was unfair for the authorities to later claim that the correct procedure was not followed. The instructions referred to in the order were issued after the export took place, and there was no doubt about the export itself. Given these circumstances, the imposition of the penalty was deemed unwarranted. Additionally, Rule 25 pertains to confiscation and penalty, with the penalty amount not to exceed the duty of excise payable on the goods. Since no duty was due in this case, the imposition of the penalty was not justified.

3. Consequently, the appeal was allowed, and the impugned order was set aside. The appellant was granted consequential relief as deemed appropriate in the circumstances.