2011 (4) TMI 830 - AT - Central Excise

Penalty uner Provisions of Rule 26 - Clandestine activities - certain incriminating documents from the appellant s possession found who was working as a Commission Agent for M/s. BLRM - Held that - M/s. BLRM has accepted the clandestine activities on their part and has paid the duty along with 25% of penalty. If that be so, admittedly, the appellant was in hand in gloves with M/s. BLRM for procuring the orders from the buyers and placing the same to M/s. BLRM, who was clearing the goods without payment of duty - As such, appellant is liable to penalty - reduce the penalty to Rs. 25,000/-.

Summary

The Appellate Tribunal CESTAT, Ahmedabad imposed a penalty of Rs. 1.50 Lakhs on the appellant for aiding and abetting clandestine activities of M/s. Balbir Rolling Mills Limited. The appellant, a Commission Agent for BLRM, received commission related to clandestine clearances. BLRM accepted the activities and paid duty with penalty. The penalty for the appellant was reduced to Rs. 25,000 considering his total commission earned was Rs. 30,000.