Case Law Details
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
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