2008 (11) TMI 506 - AT - Central Excise

Summary

Issues involved: Imposition of penalties u/s Rule 26 of Central Excise Rules, 2002 on appellants based on undervaluation of goods and duty evasion.

Imposition of Penalties: The judgment pertains to four appeals arising from a common impugned order imposing penalties on the appellants u/s Rule 26 of Central Excise Rules, 2002. The penalties were imposed due to undervaluation of goods and payment of duty on the lower side by M/s. Goyal Synthetics P. Ltd., a 100% EOU engaged in the manufacture of texturised yarn and draw twisted yarn. The present appellants, buyers of the cleared goods, were alleged to have connived and colluded with M/s. Goyal Synthetics in the evasion of duty. However, upon review of the impugned order, statements of the buyer units' proprietors, and M/s. Goyal Synthetics' representative, the Tribunal found no evidence to support the conclusion of deliberate connivance and collusion. The adjudicating authority failed to discuss any evidence supporting the imposition of penalties, leading the Tribunal to set aside the impugned order and allow all the appeals with consequential relief to the appellants.