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2005 (4) TMI 523 - CESTAT, MUMBAIDemand of duty - Clandestine removal of the goods - manufacture of fireworks - Penalty on partners - HELD THAT:- We find that the conduct of the appellants has been fraudulent in as much as in respect of shortages in the finished stock and the duty paid godown the matter has not been contested. There is a clear cut case of removal without payment of duty detected by the officers when a full truck load of fireworks were intercepted without any duty paying documents and the appellants have failed to produce any duty paying documents relating to them till today. We, therefore, hold that the findings given by the Commissioner are fully supported by the statement of the partner and their fraudulent conduct. The packing slips were duly signed by the partner and contain all details including vehicle number and therefore they were more in the nature of delivery slip rather than the packing slips. Similarly lorry receipt bear signature in most cases of the consignee in token of having receive the goods and also admitted by the partner in his statement. The demand of duty and confiscation of goods is therefore upheld and so is the redemption fine imposed. As regards the mandatory penalty u/s 11AC, we hold that the penalty is the maximum penalty provided and not equivalent penalty and we are inclined to reduce this penalty to Rs. 5 Lakhs only. As regards the second appeal regarding penalty on the partner since the partner was actively involved in the removal of the goods, we find no justification to interfere with the penalty imposed on him which in our view is reasonable. Both the appeals are disposed of in above terms.
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