DLF INDUSTRIES LTD. Vs. CCE., MEERUT

JUDGEMENT

(1.) THIS appeal has been preferred by the appellants against the Order -in -original dated 30.3.2000 passed by the Commissioner of Central Excise, Meerut imposing penalty of Rs. 5,00,000/ - on them under rule 209 -A of the Central Excise Rules.

(2.) THE proceedings were initiated against the present appellants and M/s. Aqauta Sugar and Chemicals on the strength of show cause notice issued by C.E. Commissionerate -II Meerut In that show cause notice the Company M/s. Agauta Sugar and Chemicals were called upon the pay duty on the T.G. Sets manufactured and installed in their factory premises while the penalty on the present appellants was also proposed to be imposed under rule 209A for having abetted that Company in the manufacture, installation and clandestine removal of those T.G. Sets. After getting their reply, the Commissioner confirmed the duty demand as indicated in the show cause notice on M/s. Agauta Sugar and Chemicals and imposed penalty of Rs. 5,00,000/ - under rule 209A of the Rules, on the present appellants through the impugned Order -in -original. The said order was, however, challenged by M/s. Agauta Sugar and Chemicals before the Tribunal and the Tribunal set aside the same through Final No. 135/2001 -B dated 10.10.2000 by holding that M/s. Agauta Sugar and Chemicals were not liable to pay duty on the manufactured T.G. sets.

(3.) THE learned counsel has contended before us that when duty liability has been set aside against the Company M/s. Agauta Sugar and Chemicals, the penalty under rule 209A of the Rules as an abetter, on the present appellants cannot legally survive.