Order date – 30 January 2023

Parties: Excellent Road Carriers Vs C.C.E. & S.T.-Vapi

Facts –

• The Appellant, Excellent Road Carriers has been penalized under Rule 26 of Central Excise Rules, 2002 for an alleged offence of transportation of imported goods from the port to M/s Pamis Tex Pvt. Ltd.

Issue –

• Whether the imposition of penalty under Rule 26 is in order?

Order –

• The Tribunal held that from the plain reading of Rule 26 it is explicitly clear that under Rule 26 the penalty is imposed when the person deals with the excisable goods which is liable for confiscation. From the plain reading of the definition of ‘excisable goods’ it is clear that it is only those goods which are subject to duty of excise.
• Thus, it was held that in the present case the goods transported by the appellant are indeed imported goods therefore, for dealing with the imported goods penalty under Rule 26 cannot be imposed.
• Hence the appeal is allowed.