9911796707
TMI Blog2017 (5) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... -2017 - Shri S. S. Garg, Judicial Member Mr. M A Narayana, Advocate For the Appellant Mr. Parashiva Murthy, AR For the Respondent ORDER Per S. S. Garg The present appeal is directed against the impugned order dated 30.11.2015 passed by the Commissioner whereby the Commissioner has imposed a penalty of ₹ 30 lakh on the appellant under Rule 26 of the Central Excise Rules, 2002. 2. Briefly the facts of the case are that the appellant is a fully owned subsidiary of M/s. Homag Finance GMBH Germany, a subsidiary of M/s. Homag Holzbearbeitungssysteme GMBH, which in turn is held by M/s. Homag Group AG, Germany, an agglomeration of companies based in Germany. The manufacturing company is manufacturing various types o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the manufacturing company. Aggrieved by the said order, the present appeal has been filed. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the impugned order is not sustainable in law as the same has been passed contrary to the provisions of rules and also contrary to the binding judicial precedents. He further submitted that as per Rule 26 of the Central Excise Rules, 2002, no penalty can be imposed on the company. He further submitted that the provisions of Rule 26(1) is attracted only when the noticee accused has the knowledge or reason to believe that the offending goods are liable to confiscation, whereas in the instant case, neither there was a proposal to confiscate any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of both the parties and perusal of the material on record as well as the judgments cited at the bar, I find that the reference to the word person in Rule 26 refers to only the natural person and company cannot be penalized under Rule 26 of the Central Excise Rules, 2002 as has been held in the case of M. N. Shah and Steel Tubes of India Ltd. cited supra. Here it is pertinent to refer to Rule 26 which is reproduced herein below: Rule 26. Penalty for certain offences. - (1) Any person who acquires possession of, or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with, any excisable goods which he knows or has reason to believe are liable to confi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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