Penalty imposed u/r 26 of Central Excise Rules 2002 set aside ...

Directors escape excise duty penalty due to lack of evidence, denial of cross-examination and failure to establish involvement.

Case Laws     Central Excise

October 8, 2024

Penalty imposed u/r 26 of Central Excise Rules 2002 set aside due to violation of principles of natural justice and lack of evidence. Department's case based solely on statements without allowing cross-examination. Rule 26 penalty requires involvement in clearance of goods liable for confiscation, which was not established against the appellants. Imposition of penalty u/r 26 unsustainable as appellants not involved in activities attracting Rule 26. Penalty on directors set aside as one director not concerned with activities at the relevant plant. Appeals of three appellants allowed, fourth appellant's appeal partly allowed.

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