2014 (10) TMI 866 - AT - Central Excise

Penalty u/s 11AC - Commissioner reduced penalty as no clandestine removal of the goods in question - Held that -Adjudicating authority penalized the appellant under Rule 25 read with Section 11AC of Central Excise of 1944. Rule 25 of Central Excise Rules 2002 deals with circumstances in which penalty can be imposed taking shelter of section 11AC of Central Excise Act 1944. The present case is a case which is concerned for non-accountal of excisable goods manufactured or stored by the appellants. It is in respect of shortage noticed in the course of inventory during investigation. When such is the event this is a case inviting penal provision of section 11AC with the aid of Rule of 25 Central Excise 2002. Therefore the appeal is remanded to the Commissioner (Appeal) to reconsider the provision of law relating to penalty and pass appropriate order granting fair opportunity of hearing to the appellant.

Summary

The Appellate Tribunal CESTAT NEW DELHI reduced penalty from Rs. 3,78,619 to Rs. 50,000 indicating no clandestine removal of goods. The case involved non-accountal of excisable goods, leading to penalty under Section 11AC with Rule 25 of Central Excise Rules, 2002. The appeal was remanded for reconsideration of penalty provisions.