2007 (9) TMI 523 - AT - Central Excise

Summary

Issues involved: Challenge to personal penalty under Rule 209A of Central Excise Rules.

Issue 1: Imposition of penalty on the appellant

The appellant, a trader in processed man-made fabrics, faced a personal penalty of Rs. 7,49,739 under Rule 209A of Central Excise Rules. Central Excise officers seized processed fabrics from the appellant's shop, alleging non-duty payment. The original Adjudicating Authority confirmed the penalty, but the Commissioner (Appeals) dropped the duty demand, noting that the appellant was not the manufacturer. The appellant argued that without duty demand, no legal basis exists for imposing a penalty, citing relevant case law. The Tribunal agreed with the appellant, emphasizing that as a trader procuring goods, the appellant cannot be penalized for non-production of duty documents when duty demand is dropped. Consequently, the Tribunal set aside the penalty, allowing the appeal.

Significant Phrases:
- Personal penalty under Rule 209A of Central Excise Rules
- Seizure of processed fabrics for non-duty payment
- Commissioner (Appeals) dropping duty demand due to appellant not being the manufacturer
- Appellant's argument against penalty imposition without duty demand
- Tribunal's agreement with appellant's contention as a trader
- Setting aside penalty and allowing the appeal