Dhanjibhai Bhikhabhai Ranparia Vs C.C.E. & S.T.-Rajkot (CESTAT Ahmedabad)
As regard the appellant M/s. Dhanjibhai Bhikhabhai Ranparia, he is the raw material supplier. The raw material supplier cannot be implicated for clandestine removal of the goods by the buyer of the raw material. Therefore, the penalty on M/s. Dhanjibhai Bhikhabhai Ranparia is not sustainable.
Purchasing Goods without invoice/bill amounts to abatement for evasion of duty – Penalty reduced by CESTAT
As regard other appellants as I discussed above the lapse on their part is that they have purchased goods without proper invoice/bills from M/s. Rainbow Engineering Co therefore, to some extent they are responsible for evasion of duty by M/s. Rainbow Engineering Co. Accordingly, considering the overall facts of the case and the amount of duty involved, I am of the view that the penalty of Rs. 1 Lakh in each appellants is very harsh, therefore, I reduce the penalty from 1 Lakh to 25,000/- each on 4 appellants namely Cosmo Pump, Sai Shereegupta, Gupta Machinery Stores, Geeta Enterprises.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
In these appeals, the appellants have challenged imposition penalty of Rs. 1 Lakh each on the appellants in connection with a case of clandestine removal by M/s. Rainbow Engineering co., against which the demand of Central Excise Duty of Rs. 8,36,530/- was confirmed. In this case there is an order of confiscation of 26 power driven pumps valued of Rs. 1,12,600/- and for redemption of the same of fine of Rs. 30,000/- was imposed.
2. Shri Rahul Gajera, Learned Counsel appearing on behalf of the appellant submits that the issue involved is that whether the pumps cleared by M/s. Rainbow Engineering Co., is not in conformed to the Bureau of Indian Standards (BIS), accordingly not eligible for SSI exemption under Notification No. 8/2003-CE dated 01.03.2003. It is his submission that the condition of notification of BIS certification has no relevance with the present appellants and it is purely question of law which is applicable to M/s. Rainbow Engineering co and for any violation of the notification and wrong availment of Exemption Notification No. 8/2003-CE, the present appellants cannot be penalized. He placed relied upon the following judgments:
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