SOFIYAN AHSRAF RAJWANI Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE application for waiver of pre -deposit of penalty of Rs. 25.00 lakhs imposed upon the applicants herein under the provisions of Section 26 of the Cenvat Credit Rules, 2002 read with Section 112 of the Customs Act, 1962, arises out of order of the Commissioner of Central Excise, Rajkot.

(2.) WE have heard both sides. The goods confiscated under the provisions of Rules 24 and 25 of the Central Excise Rules, 2002 have not been established to be imported goods giving rise to liability to penalty under Section 112 of the Customs Act, 1962. There is no separate penalty imposed in terms of Rule 26 of the Rules but only a consolidated/composite penalty under Central Excise Rules read with the relevant section of the Customs Act, 1962 has been imposed. We therefore prima facie hold that a strong case has been made out for waiver of pre deposit of penalty. Accordingly, we waive pre -deposit and stay its recovery pending the appeal.