9911796707
TMI Blog2017 (5) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... 52883/2017 - Dated:- 13-4-2017 - Mr. Satish Chandra, President and Mr. Ashok K. Arya, Member(Technical) Ms. Swetima Diwedi, Advocate for the Appellant Shri H.C. Saini, DR for the Respondent ORDER Per Ashok K Arya: These two appeals have been filed by Shri Manohar Singh Rana and Shri Vijay Soni against Order in Original No.36-37/2012 dated 27.02.2012 passed by the Commissioner, Central Excise, Indore. The Order in Original is passed mainly in case of the assessee, M/s Soni Spat Ltd. The Order in Original disposed off two Show Cause Notices No DGCEI No. IV(6)INV/RUI72/07/Ptl/1309 dated 2.6.2008 No. DGCEI/AZU/36-11/2009-10/440/IND/ dated 7.05.2009. The Order in Original inter alia imposes a penalty of ₹ 5 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , these two appeals have been filed by the Appellants before the Tribunal. 3. With this background, we have heard the ld Counsel Ms. Swetima Diwedi for the Appellants and Shri H.C. Saini, ld DR for the Revenue. 4. On behalf of the Appellant, the ld Counsel inter alia submits the following: a) Penalty imposed under Rule 26 of Central Excise Rules, 2002 is bad in law as there was no knowledge on their part regarding intention of payment of duty by M/s Soni Ispat Ltd. b) There is no evidence to show that the Appellant has any personal knowledge of deliberate non- payment of duty or they were involved in the alleged act of commission of any offence related to Central Excise Rules. c) There is no evidence to involve the Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these two Appellants indicating that they had a guilty [mind, and they had personal knowledge and involvement in the evasion of duty/taxes. As per the provisions of Rule 26 of Central Excuse Rules, 2002, element of personal knowledge or mens rea is an essential prerequisite for imposing the penalty thereunder. The Tribunal in the case of Z.U. ALVI v/s Commissioner of C. Ex., Bhopal (supra) observes that employee of the manufacturer does not have any existence independent as far as Central Excise Law is concerned. 6.1 When the Department fails to establish that these two Appellants had personal knowledge and guilty mind (mens rea) in respect of the activities of the assessee leading to evasion of duty of Central Excise, the penalty impos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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