2013 (2) TMI 690 - HC - Central Excise

Summary

Issues Involved:
The issues involved in this case are the challenge to the order of Commissioner (Appeals) setting aside penalties under Rule 26 of the Central Excise Rules, 2001, and the imposition of separate penalties for buying material without payment of duty.

Challenge to Order of Commissioner (Appeals):
The present appeal under Section 35(G) of the Central Excise Act, 1944 was filed against an order passed by the Customs, Excise and Service Tax Appellate Tribunal, which dismissed the Revenue's appeal against the respondent. The Revenue challenged the order of Commissioner (Appeals) setting aside the penalties under Rule 26 of the Central Excise Rules, 2001. The Tribunal affirmed the finding of Commissioner (Appeals) that it is not necessary to impose penalty for buying material without payment of duty. Therefore, imposition of separate penalties in the present case was not interfered with.

Demand of Duty and Penalty:
The Court noted that the demand of duty and penalty against the assessee for the offence of manufacturing rolled products from unaccounted material had been affirmed in a previous case. The Tribunal affirmed the order passed by the Commissioner (Appeals) setting aside the penalties under Rule 26 of the Rules, stating that imposition of penalties is not mandatory under the Rules framed. As a result, the Court found no substantial question of law arising for consideration and dismissed the present appeal.