2016 (5) TMI 562 - HC - Central Excise

Levy of penalty for abetment - allegation of diverting and illicitly clearing the raw materials procured duty free and their finished product in DTA by resorting to under-valuation - Tribunal observed that, it was evident from record that goods were received by the main noticee and there was no material on record on the involvement of the present respondent for the alleged diversion of finished goods. Also, as per well-settled law, penalty cannot be imposed merely on the basis of assumption and presumption and without any basis reported in 2015 (9) TMI 623 - CESTAT AHMEDABAD - Apex Court dismissed the appeal on the basis that entire issue being factual in nature and no question of law arises.

Summary

The Gujarat High Court dismissed an appeal against a CESTAT order regarding a penalty issue. The Tribunal found no evidence implicating the respondent in the alleged diversion of goods, stating that penalties cannot be imposed without basis. The Court concluded that the issue was factual, with no legal question arising.