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2013 (8) TMI 871 - CESTAT MUMBAIClandestine removal of goods - Suppression of facts - Penalty u/s 11AC - Penalty on Directors of Company - Held that:- it is evident that the appellant had suppressed production of the plastic pipes manufactured by the appellant in their statutory accounts and had cleared these goods without payment of Central Excise duty and without issue of invoices. - the goods appearing in the private records were manufactured by the appellant-firm but were not accounted for in the RG-1 register - This statement of the sole distributor also corroborates the clandestine removal of the goods by the appellant-firm. Therefore, the argument of the appellant that there is no evidence to corroborate the suppression of production and clandestine removal of goods is not correct and has to be rejected - appellant has admitted clearly, suppression of production and clearance of excisable goods without payment of duty. Therefore, the onus shifts to the appellant to prove the contrary which the appellant has not discharged at all. The private records maintained by the appellant giving details of production and clearance of the goods is a corroborative evidence and entries made therein have been corroborated by the statements of Shri Vijay Makhija, Managing Director of the appellant-firm and by the statement of Shri Anil Budhawani, partner of the sole distributor-firm - finding of the adjudicating authority with respect to clandestine production and removal of goods cannot be faulted at all. Accordingly, we uphold the demand of duty of ₹ 18,57,661/- along with interest thereon. Since the appellant has resorted to suppression of facts, penalty under Section 11AC is clearly attracted. - Decided against assessee. Penalty on Shri Vijay Makhija, Managing Director of the appellant-firm is reduced from ₹ 5 lakhs to ₹ 2 lakhs - However, Penalties on Smt. Hema Makhija and Shri Arjun Mulchandani are set aside - Decided partly in favour of appellant.
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