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2010 (8) TMI 826 - CESTAT CHENNAIDuty demand - Penalty - Clandestine removal of goods - Unaccounted stock - Held that:- Merely because the defence statements were not accepted by the lower authorities it cannot be said there is violation of principles of natural justice in not considering the documents submitted by the appellants. The authorities have relied upon the private records maintained by the appellant-firm corroborated by the initial statements of Manager, the Accountant and also a Partner and further letters submitted by the said partner himself. No valid defence has been produced before them to contradict the earlier statement of Shri Veeramuthu Pillai dated 8-6-2001 which stands generally corroborated by various letters addressed by him to the Central Excise authorities. The plea that the unaccounted clearances related to unbranded goods which were manufactured in the houses of the employees, in the given facts and circumstance, is clearly an afterthought. As already mentioned the various letters by Shri Veeramuthu Pillai was only to extricate him of the charge of prior knowledge of clandestine activity in his firm and inasmuch as no separate penalty has been imposed on him, this issue need not be further dealt with. As it is a clear case of unaccounted and clandestine removal which stands admitted, invocation of extended period of limitation and imposition of equal amount of penalty on the appellant-firm are justified - However, Penalty reduced - Decided partly in favour of assessee.
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