Penalty u/s 25 of CER 2002 not imposable on mere statements without supportive evidences

Amit Rastogi Vs Commissioner of Central Excise & Central Goods & Service Tax (CESTAT Delhi)

CESTAT Delhi held that imposition of penalty under rule 25 of CER 2002 merely on the basis of statements without supporting evidences is untenable in law.

Facts- The Appellant had purchased copper scrap from the registered manufacturer – M/s. Star Delta Exim Pvt. Ltd., Khushkhera, Alwar. Thereafter, the Appellant as registered dealer, supplied the copper scrap to M/s.Continental Engines on cenvatable invoices.

In the course of investigation at the premises of M/s. Star Delta Exim Pvt., it was found that there was no plant and machinery, no electricity connection, no stock of raw materials or finished goods etc.

This appellant had claimed to have received copper scrap, being manufactured scrap from Star Delta Exim. Out of this, the appellant had sold some portion of copper scrap to Continental Engines Ltd, Bhiwadi.

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