CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH – COURT NO. I EXCISE APPEAL NO. 52040 OF 2024 (Arising out of Order-in-Original No. 01/Pr. Commr/C.Ex/BPL/2024-25 dated 28.06.2024 passed by the Principal Commissioner, CGST & Central Excise, Bhopal)

M/s. Sarco Roadlines Pvt. Ltd., .….Appellant A-5, Plot No. 87, Parking No. 01, Near Raghav Lodge, Transport Nagar, Gwalior (M.P.) - 452001 VERSUS Principal Commissioner, .....Respondent CGST & Central Excise, Bhopal 35-C, GST Bhawan, Administrative Area, Area Hills, Bhopal (M.P.) – 462 011 WITH EXCISE APPEAL NO. 52054 OF 2024 (Arising out of Order-in-Original No. 01/Pr. Commr/C.Ex/BPL/2024-25 dated 28.06.2024 passed by the Principal Commissioner, CGST & Central Excise, Bhopal)

Mushtaq Khokhar, .….Appellant Director of M/s. Sarco Roadlines Pvt. Ltd.

B.O. at Parking No. 01, Near Raghav Lodge, Transport Nagar, Gwalior, M.P. - 452001 VERSUS Principal Commissioner, .....Respondent CGST & Central Excise, Bhopal 35-C, GST Bhawan, Administrative Area, Area Hills, Bhopal (M.P.) – 462 011 APPEARANCE:

Shri Hukam Chand, Advocate for the Appellant Shri S.K. Ray, Authorized Representative for the Department CORAM:

HON’BLE MR. JUSTICE DILIP GUPTA, PRESIDENT HON’BLE MS. HEMABIKA R. PRIYA, MEMBER (TECHNICAL)

DATE OF HEARING: 11.08.2025 DATE OF DECISION: 12.01.2026 FINAL ORDER NO’s. 50045-50046/2026 JUSTICE DILIP GUPTA:

Excise Appeal No. 52040 of 2024 has been filed by M/s. Sarco Roadlines Pvt. Ltd.¹ and Excise Appeal No. 52054 of 2024 has been filed by Mushtaq Khokhar, Director of the appellant, to assail that portion of the order dated 28.06.2024 passed by the Principal Commissioner, CGST and Central Excise, Bhopal² that imposes penalty upon them under rule 29 of the Central Excise Rule, 2017³ read with section 11AC of the Central Excise Act, 1944⁴

2. The appellant is engaged in transportation business. The allegation against the appellant is that it illicitly transported “Karamchand” Brand Pan Masala/Zafrani Zarda which is said to have been manufactured and clandestinely removed by M/s. Ashish Enterprises⁵

3. The order dated 28.06.2024 passed by the Principal Commissioner is also against Ashish Enterprises and the portions of the order against Ashish Enterprises are reproduced below:

“46.1 In respect of M/s Ashish Enterprises, Gwalior-

(i) I confirm the demand of Central Excise Duty of Rs.13,11,358/- and NCCD of Rs. 5,36,83,560/- (Total C. Ex. duty + NCCD of Rs. 5,49,94,918/-) [Rupees Five Crore Fifty Nine Lakh Ninety Four Thousand Nine Hundred Eighteen Only] under Section 11A of the Central Excise Act, 1944 read with the provisions of Finance Act 2001/Finance Act 2020and order to recover the same from M/s Ashish Enterprises, Shri Krishna Nagar, Haider Ganj, Lashkar, Gwalior, Madhya Pradesh. Remaining demand of NCCD amounting to Rs. 1,18,84,320/- (Rupees One Crore Eighteen Lakh Eighty Four Thousand Three Hundred and Twenty Only) is dropped.

1. the appellant

2. the Principal Commissioner

3. the 2017 Rules

4. the Central Excise Act

5. Ashish Enterprises (ii) I confirm the demand of interest on the demand, so confirmed at Sr. No. (i) above, and order to recover the same from M/s Ashish Enterprises, Shri Krishna Nagar, Hairder Ganj, Lashkar, Gwalior, Madhya Pradesh under Section 11AA of Central Excise Act, 1944.

(iii) I impose penalty of Rs. 5,49,94,918/- (Rupees Five Crore Forty Nine Lakh Ninety Four Thousand Nine Hundred Eighteen Only) under Section 11AC of Central Excise Act, 1944 read with Rule 28 of Central Excise Rules 2017 upon Ashish Enterprises, Shri Krishna Nagar, Haider Ganj, Lashkar, Gwalior, Madhya Pradesh.

(iv) I impose penalty amounting to Rs. 20,00,000/- (Rupees Twenty Lakh Only) under Rule 28(1)(c) of Central Excise Rule, 2017 read with section 11AC of Central Excise Act, 1944 2017, for not taking registration for manufacturing of Tobacco Products, upon Ashish Enterprises, Shri Krishna Nagar, Haider Ganj, Lashkar, Gwalior, Madhya Pradesh.”

4. Ashish Enterprises filed Excise App