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2017 (11) TMI 821 - CESTAT CHENNAIClandestine Removal - bogus invoices - invoices bearing identical serial numbers - Held that: - the records unearthed by the department clearly bring out clandestine production and clearance of finished goods. From the records it is also clear that the log book maintained by the said Shivachandra Kumar indicated both accounted scrap denoted as M and unaccounted scrap denoted as E . This finding has not been controverted by M/s. AKS. This being so, the contentions of the ld. counsel that there is no proof that unaccounted scrap was utilized will not succeed - the penalties imposed under section 11AC on M/s. AKS and on the kingpin of the entire modus operandi N.K. Kothari is also sustained. Penalty on N.C. Kothari, Managing Director - Held that: - there is nothing on record to suggest that the said person was involved in the day to day affairs of the unit on account of ill-health and further that no other employee or other persons have implicated otherwise. For this reason, the adjudicating Commissioner, in our view, has correctly found that Shri N.C. Kothari is not liable for penalty under Rule 26 ibid. In respect of penalties on other persons, there is a clear finding by the adjudicating authority that these persons acted only on the directions of their employers, they are all only paid employees having no pecuniary or other benefit from the activities - penalty set aside. Appeal allowed in part.
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