CESTAT Upholds Excise Rule 25 Penalty Despite No Fraud; Allows Appropriation of Duty Already Paid

Little Star Foods Pvt Ltd Vs Commissioner of Central Tax Medchal – GST (CESTAT Hyderabad) In Little Star Foods Pvt Ltd vs Commissioner of Central Tax, Medchal, the CESTAT Hyderabad examined the limited issue of imposition of penalty under Rule 25 of the Central Excise Rules, 2002, along with appropriation of duty and interest already paid by the appellant. The appellant was engaged in manufacturing “Cadbury Perk with Glucose Energy” on a job work basis for another company and received conversion charges. A dispute arose regarding the classification of the product, with the department...