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TMI Blog2018 (10) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... st appellate authority was not correct in holding that mentioning Rule 25 was a typographical error and the intention was to impose penalty under Rule 26, because in para 15 of the Order-in-Original, the lower authority has discussed as to why penalty is liable to be imposed under rule 25, both on M/s Sada Healthcare Products Pvt. Ltd. and the appellant herein. Penalty u/r 25 - Held that:- Penalty under rule 25 can be imposed on any producer, manufacturer, registered person of a Warehouse or a registered dealer for various contraventions. It is not the allegation in the show cause notice that the appellant is the manufacturer - penalty u/r 25 set aside. Penalty u/r 26 - Held that:- Penalty u/r 26 is imposable on any person who acquire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ada Healthcare Products Pvt. Ltd. cleared the goods irregularly availing the benefit of exemption notification. The matter was investigated by the authorities and during investigation the Director of M/s Sada Healthcare Products Pvt. Ltd. informed the appellant that they were liable to pay duty on these products. Thereupon the appellant paid the full excise duty alongwith interest although they were not the manufacturers but the recipients of the manufactured goods. Thereafter, a show cause notice was issued to M/s Sada Healthcare Products Pvt. Ltd. seeking to deny the benefit of exemption notification No. 8/2003 and demanding duty on the coils cleared by them alongwith interest. It was also proposed to appropriate the amount already deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that indication of Rule 25 instead of Rule 26 in the Order-in-Original was only a typographic error and the intention was to impose penalty under Rule 26 only which the original authority has correctly done. 3c. Rule 26 of Central Excise Rules reads as follows. 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 confiscation under the Act or these rules, shall be liable to a penalty not exceeding the duty on such goods or rupees 1[two thousand rupees,] whichever is greater.] [P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Sada Healthcare Products Pvt. Ltd. is not sufficient to impose penalty on them under Rule 26. 5. The first appellate authority had wrongly held that the intention of the lower authority was to impose penalty under Rule 26 because the entire discussion as far as the penalty on the appellant in para 15 is only with reference to Rule 25 and not with reference to Rule 26. He relied on the case law of TATA Motors Ltd. vs. CCE, Pune [2015(328)ELT 321 (Tri.- Mum.)]. 6. Thus he argued that the order of the original authority upheld by the first appellate authority insofar as imposition of penalty on the appellant under Rule 25 of Central Excise Rules, 2002 may be set aside. 7. Ld. DR reiterated the Order-in-Original and Order-in-Appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is not the allegation in the show cause notice that the appellant is the manufacturer. As far as penalty under rule 26 is concerned, it is imposable on any person who acquires possession of or is in any way concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing or dealing in any other manner with any excisable goods which he knows or has reason to believe are liable to confiscation. Show cause notice does not bring out any facts which can support the allegation of both involvement of the appellant in any of the aforesaid activities nor the intention to do so except for the uncorroborated statement by the Director of M/s Sada Healthcare Products Pvt. Ltd. In conclusion, we find that the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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