2009 (11) TMI 314 - AT - Central Excise

Penalty- clandestine removal- offence of clearance without invoice admitted by supplier. Penalty imposed under Rule 25 of Central Excise Rule, 2002 on appellant buyer. Held that- Rule 25 applicable to producer, manufacture, registered person of a warehouse or registered dealer. Appellant not fall under any of the categories. Penalty under Rule 25 set aside. Redemption fine- M.S. ingots valued at over Rs. 12 lakh. Confiscation from buyer as clearance without invoice admitted by supplier. No reason to interfere with quantum of redemption fine.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellant, a buyer of M.S ingots, challenging a penalty imposed under Rule 25 of the Central Excise Rules, 2002. The tribunal upheld the fine but set aside the penalty as the appellant did not fall under the categories covered by Rule 25. The value of the confiscated goods was over Rs.12 lakhs.