Law: Central Excise Rules, 1944

Section:

Central Excise Rules, 1944-- ----R.  226---Imposition  of  penalty  under  8.226,  Central  Excise  Rules, 1944--Extent---Provision of R.226(1), Central Excise Rules, 1944, provides for imposition of penalty of Rs.2,000 at the maximum or ten times the amount of duty evaded whichever is greater---Where Authority wanted to exercise the other option available to it i.e. levying penalty at the rate of ten times the duty evaded, that was only possible after amount of duty had been calculated and determined---Order in question, showed that Authority did not make any such determination and remitted the matter to its subordinate with direction .to conduct comprehensive audit and to find out whether any evasion of duty had taken place due to manipulation of record---Without determining the amount of duty evaded, no penalty in excess of Rs.2,000 could be levied---Order in question, to the extent of levy of penalty in excess of Rs.2,000 was without lawful authority and of on legal effect---High Court's judgment, however, would not debar Authority from passing a fresh order after determining the amount of duty involved. Imtiaz Rashid Siddiqui for Petitioner. Nemo for Respondents. Date of hearing: 20th November, 1993, JUDGMENT On 19-1-1992, the Deputy Collector, Central Excise and Sales Tax, Faisalabad called upon the petitioner to show cause as to why it be not proceeded against for having violated rules 9, 52, 52-A, 241, 246, 210 and 226 of the Central Excise Rules, 1944. The petitioner contested this notice by file a reply. However, on 24th July, 1992, the Deputy Collector held the petitioner guilty of violation of the aforesaid rules and imposed a penalty of Rs.200,000 upon it under rule 226 of the Central Excise Rules, 1944. Feeling aggrieved by this order, the petitioner went in appeal before the Collector (Appeals) but the same was dismissed on 23rd November, 1992. The petitioner took   the matter in revision before the Federal Government which was partly accepted on 23-4-1993 and the penalty was reduced from Rs.2,00,000 to Rs.1,00,000. In support of this petition, the contention raised by the learned counsel for the…