SANJIV SRIVASTAVA:

This appeal is directed against Order-In-Appeal No. 250- 251-CE/LKO/2012 dated 30.05.2012. By the impugned order following has been held:

9. In the circumstances, I modify the impugned Order-in- Original No. 05-AC/FBD/CEX/12 dated 17/02/2012 passed by the Assistant Commissioner. Central Excise Division Farrukhabad to the extent that the penalty imposed upon Shri Ajay Gupta (Appellant No.2) under Rule 26 of the Central Excise Rules is set aside.

1.2 By the order in original dated 17.02.2012 following was held:

ORDER

1. I therefore,. confirm the demand of Basic Excise Duty of Rs 3,16,940/-, Additional Excise duty of Rs. 31,694/, Ed. Cess of Rs 6,973/- and S&H Cess of Rs. 3,486/- totaling to RS. 3,59,093/- involved on 1509.24 bags of 8 gms; under Section 11A of the Central Excise Act. 1944 alongwith interest under Section 11A B of the said Act. The amount so deposited by the party as Rs.25,000/-vide GAR-7 no. 18 dated 19.1.2010 against the said clandestine removal is hereby appropriated.

2. I further confirm the demand of BED of Rs. 94,507/-, Additional Excise duty of Rs. 9,451/-, Ed. Cess Rs. 2,079/- and S & H Cess of Rs. 1,040/- totaling to Rs, 1,07,077/- involved on