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TMI Blog2015 (10) TMI 2350X X X X Extracts X X X X X X X X Extracts X X X X ..... her proprietary concern is engaged in the manufacture of PET jar and Bottles and PET perform. The appellant purchases pet jars from M/s.SLH International which is used in the packing of edible oils. In pursuant to survey conducted by the anti evasion branch of the Central Excise department, it was revealed that M/s.SLH International cleared the goods to M/s,Babaji Udyog witout payment of duty in clandestine manner. The other appeals are filed by Shri Inder Aggarwal and Shri Santosh Aggarwal of M/s.Babaji Udyog Ltd. The appellants are aggrieved by the imposition of penalty under Rule 26 of Central Excise Rules, 2002. 3. At the time of hearing, learned Counsel for the appellants submitted that he is confining his arguments with regard to imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in CCE, Raipur vs. Anand Agrawal-2013 (288) ELT 90 (Tri.-Del.) . 5. The issue in the above appeals revolves around a narrow compass. The question that poses for consideration is that if the main noticee discharges the duty liability alongwith interest and 25% penalty, whether the proceedings would come to an end in regard to other co-notices also. It is not in dispute that the main noticee M/s.SLH International has deposited the demand alongwith interest and 25% penalty. According to Revenue, the proceedings against the main noticee only stands concluded and that the proceedings against the appellant do not come to an end. 7. Sub-section (2) of Section 11A is reproduced below: (2) The Central Excise Officer shall, after considering the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der law but are restricted to other persons to whom noticees are served under sub-section (1) of Section 11A. As already observed, notices under sub-section (1) of Section 11A are served only to those persons who are required to pay duty and have either not paid duty or short-paid. Noticees under sub-section 1 are not to be issued to other persons who may be employees of the manufacturing unit. As such analyzing the proviso to sub-section (2) of Section 11A, it becomes clear that the proceedings are deemed to be conclusive only in respect of such person who discharges his duty liability in terms of sub-section (1A) or to whom notices stands served under sub-section (1). 8. As is seen from the above, the invocation of penal provision of Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (2) would cover the co-noticees/persons who face the allegations of contravention of Central Excise Rules, which are linked with the allegation of deliberate/fraudulent short payment, non-payment or erroneous refund of duty against the person chargeable with duty facing the duty demand i.e. the person who are alleged to have knowingly dealt with the excisable goods, liable for confiscation in the manner mentioned in Rule 26(1) of the Central Excise Rules, 2002 and for this reason have been show caused for imposition of penalty under this Rule, either in the notice under Section 11A(1) issued to the person chargeable with duty or by separate notices issued in this regard. This interpretation would make sense, as when the proceedings ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for imposition of penalty under Rule 26 against other persons like traders who had purchased the goods, transporters who had transported the goods cleared by manufacturer/assessee, the directors/employees of the manufacturer/assessee company. The Tribunal has discussed the category of persons that would fall into the group 'other persons'. Further the Board's Circular No. 831/08/06-EX dated 26.7.2006 has also been considered. I concur with the ratio laid in Abir Steel Rolling Mills case, which is squarely applicable to the instant case, the facts in issue being similar. 10. In view of foregoing discussion, applying the proposition laid in Abir Steel Rolling Mills case (supra), I find that penalty imposed on the appellants is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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