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TMI Blog2012 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... g or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to confiscation under the Act or these rules, shall be liable to a penalty - Where regular orders for purchase of the goods were made by the senior officers, appellants should have fully conversant with the provisions of the Central Excise law. Therefore, penalty imposed against them is sustainable - E/1978 and 2080/2004 - A/428-429/2011-WZB/C-IV(SMB) - Dated:- 18-8-2011 - Shri S.K. Gaule, J. REPRESENTED BY : Shri S. Rustomjee, Advocate, for the Appellant. Shri Y.K. Agarwal, SDR, for the Respondent. [Order]. Heard both sides. 2. The appellants filed these appeals against Order-in-Original 3/2004, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. Aggrieved by the same, the appellants are in appeal. 4. Shri Rustomjee, learned Advocate appearing for the appellants submitted that M/s. Allwyn was a unit owned by the Government and subsequently amalgamated with M/s. Voltas Ltd. The learned Advocate submitted that as per the provisions of the Notification there is no obligation exists upon purchaser of the goods to adhere all the clearances made by one. The notification based obligation is binding only upon the supplier of the goods. He further contended that learned Commissioner in his order has given findings that there was no guilty mind working behind the transaction. He further submitted that even if they had knowledge or reason to belief that the goods being received by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit available to refrigerator components Rs. 15 lakhs, he was also aware that after crossing the limit of exemption of Rs. 15 lakhs the SSI unit should pay duty applicable and clear the goods on relevant Central Excise documents. He also deposed that he was having approval of the Vice-President to place the purchase order. In his statement Shri Mohan also stated that first purchase order on M/s. Neha Refrigeration was placed for worth Rs. 40,32,000/- and the said order was further amended to supply the goods worth Rs. 87,68,000/-, which is definitely much more than Rs. 15 lakhs. He also drawn my attention to para-6 of the Order-in-Original, wherein it is recorded that a letter was addressed to M/s. Neha Refrigeration stating that supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were required to pay the duty. This is a case of availment of specific Notification. Even Shri Mohan in his statement has admitted that it was in the knowledge of the Vice President of the company and they were having regular correspondences with supplier M/s. Neha Refrigeration, who has been subsequently found fictitious. All the responsible persons of the company had knowledge that the limit of Rs. 15 lakhs has been crossed rendeing the goods liable for confiscation. As regards their contention that learned Commissioner has arrived at the conclusion that they had no guilty mind , Rule 209A envisages the knowledge or reason to believe, as already discussed above, the appellant s knowledge to believe that the goods are liable for confiscat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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