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2015 (5) TMI 985 - AT - Central ExciseLevy of penalty under Rule 26 on the ground that appellants have issued invoices to the traders without actually supplying the goods - Held that - In the same investigation the penalty on the co-noticee have been reduced by this Tribunal therefore it cannot be said that in this case penalty cannot be reduced therefore following the precedent decision in the case of Adhunik Steel Ltd. and M/s. Tata Steel 2015 (12) TMI 1053 - CESTAT NEW DELHI the penalty on the appellant is reduced - Decided partly in favor of appellants.
Issues:
Appeal against imposition of penalty under Rule 26 of the Central Excise Rules, 2002. Request for reduction of penalty based on previous Tribunal decisions. Contention on reduction of penalty based on case law of Ragini Steels(P) Ltd. Analysis: The appellants appealed against the imposition of penalties under Rule 26 of the Central Excise Rules, 2002. The penalty was imposed due to the issuance of invoices to traders without actual supply of goods. The appellants did not contest the merits of the case but sought a reduction in the penalty. They referred to previous Tribunal decisions involving Adhunik Steel Ltd. and M/s. Tata Steel Ltd. where penalties were reduced. The appellants argued that penalties imposed in the present case should also be reduced based on these precedents. On the contrary, the learned AR objected to the appellant's contention. The AR cited a case law of Ragini Steels(P) Ltd. where the High Court held that the Tribunal cannot simply observe that the penalty is on the higher side without providing reasoning for reduction. After hearing both parties and considering the submissions, the Tribunal analyzed the situation. They noted that in the same investigation, penalties on co-noticees had been reduced by the Tribunal. Therefore, following the precedent set by previous decisions, the Tribunal decided to reduce the penalties imposed on the appellants. The Tribunal, in line with the precedent decisions and considering the circumstances, reduced the penalties as follows: Appeal No. E/51930/2014 - Rs.11,000/-, E/54436/2014 - Rs.24,000/-, E/54437/2014 - Rs.8,500/-, E/54439/2014 - Rs.27,000/-, E/54551/2014 - Rs.6,000/-. The order was made accordingly, and the appeals were disposed of based on the terms mentioned in the judgment.
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