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TMI Blog2012 (6) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... le is only Rs.5,000 whereas Commissioner imposed a penalty of Rs.5 lakh u/r 27 which show clear non-application of mind and ignorance - in favour of assessee. - E/1479/11 - S/759/12/EB/C-II - Dated:- 6-3-2012 - Ashok Jindal, P R Chandrasekharan, JJ. For Appellant: Shri.N R Mainkar, Adv. For Respondent: Shri.A K Prabhakar, Supdt. (AR) Per: P R Chandrasekharan: 1. This appeal and stay application are directed against order-in-original No.49/BR-45/Th-I/2009 dated 15/12/2009 passed by the Commissioner of Central Excise, Thane-I 2. The facts arising for consideration are as follows:- 2.1 The appellant, M/s. Dena Bank, Industrial Finance Branch, Mumbai, purchased/ discounted 24 export bills pertaining to Karnataka Dyeing P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a period of six months and renewable thereafter for the same period as and when required until disposal of the petition. 2.3 The appellant replied to the notice issued by the department stating that they have not received the proceeds of the three bills sent for collection and they will remit the proceeds of these bills to the department as and when they receive the same. The show-cause notice was adjudicated by the Commissioner vide the impugned order and the Ld. Commissioner held as follows:- Dena Bank, Industrial Finance Branch, Cuffe Parade, Mumbai, despite direction issued by the office of Central Excise vide letters dated 23/06/2004, 15/07/2004 and 17/12/2004 have failed to surrender/credit the sale proceeds of goods which h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.5 lakh, which is not provided for in the law. 3.2 He also relies on the judgement of this Tribunal in the case of Bank of Madura Ltd., Others Vs. CC, Madras reported in 1987(28)ELT396 (Tribunal) wherein in a similar situation this Tribunal held as follows:- In the instant case, notwithstanding the fact that Bank of Madura without exercising proper diligence and reasonable care, acting in a most imprudent way, has acted in flagrant violation and breach of all codes and regulations of financial discipline expected of a scheduled bank, no act or omission of the Bank can be said to have been rendered the imported goods liable for confiscation within the meaning of Section 112 of the Act. The mere opening of letters of credit withou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f for disposal. 7. The short question involved is whether the act of discounting export bills or sending export bills for collection as part of normal banking operations by the appellant bank would render the export goods liable to confiscation and the bank liable to penalty. The liability to confiscation under excise law arises for violation of provisions of Central Excise Act and rules made thereunder. A banking transaction would not normally violate the Central Excise law or the Rules, especially when the same is carried out as part of the normal banking operations. This Tribunal, in Bank of Madura case cited supra held that even if the bank undertook the banking transaction without exercising proper diligence, the same might amount to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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