When the proceedings against the manufacturer stand concluded on payment of disputed amount of duty along with interest and penalty, no penalty would be imposable under Rule 26 of the Excise Rules on other persons like traders

Last updated: 18 February 2016

Court :
CESTAT, Mumbai

Brief :
The Hon’ble CESTAT, Mumbai has relying upon the case of Commissioner of Central Excise, Raipur Vs. Abir Steel Rolling Mills [2013 (7) TMI 405 - CESTAT NEW DELHI], held that when the proceedings against the Respondent stand concluded on payment of disputed amount of duty along with interest and 25% of the duty as penalty, there would be no sense in continuing the proceedings for imposition of penalty under Rule 26 of the Excise Rules against the other Respondents like traders who had purchased the goods, transporters who had transported the goods cleared by the Respondent, the Directors/employees of the Respondent.

Citation :
Commissioner of Central Excise And Customs Aurangabad / Nashik – II Vs. Ambika Waste Management Pvt. Ltd., Ambadas Santosh Ngargoje, Harish kumar Harji vandas Gandhi, Shree Salasar Ispat Pvt. Ltd.