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2017 (7) TMI 18 - AT - Central ExciseRectification of mistake - Held that - the adjudicating authority has imposed fine on the appellant no. 1 under Section 34 of the Central Excise Act, 1944 in lieu of the confiscation of goods cleared in contravention of the provisions of the Central Excise law. From the operative part of the adjudication order, it is evident that goods were liable for confiscation. Thus, the provisions of Rule 26 of the Central Excise Rules, 2002 can be invoked for imposition of personal penalty - imposition of personal penalty on the appellant no. 2 under Rule 26 ibid is proper and justified - the quantum of penalty is reduced from ₹ 2, 00,000/- to ₹ 50,000/- - appeal allowed - decided partly in favor of appellant.
Issues:
Rectification of mistake and recalling of final order regarding imposition of penalty under Central Excise Act, 1949. Analysis: The applicant filed a Miscellaneous Application seeking rectification of mistake and recalling of the Final Order passed by the Tribunal. The applicant requested to set aside the penalty imposed under Rule 26, 2002, relying on a specific case law. However, the Tribunal found that no observations were made by the bench during the final hearing. The impugned order partially allowed the appeal by reducing the penalty to 25%, but did not address the penalty imposed on the second appellant. It was noted that the goods were liable for confiscation, justifying the imposition of a personal penalty under Rule 26. The Tribunal distinguished the case law cited by the applicant, emphasizing that the goods in question were not held liable for confiscation. The Director of the appellant admitted to non-accountal of raw material and clandestine removal of final goods, leading to the conclusion that the goods were liable for confiscation. Consequently, the personal penalty imposed on the second appellant was deemed proper, although the quantum of penalty was reduced from ?2,00,000 to ?50,000. The Tribunal modified paragraph 8 of the order to reflect the reduction of penalty to 25% for the first appellant and a penalty of ?50,000 for the Director. The decision was pronounced in open court on 29.06.2017, disposing of the Miscellaneous Application accordingly.
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