Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2009 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (2) TMI 620 - AT - Central ExcisePenalty - Shortage of goods - Clandestine removal - evidence - Held that: - It is a clear case of admitted shortage of finished excisable goods on the day of visit by the Officers and the duty involved stands paid and the same is not in dispute. However, the charge of clandestine removal is a severe one and requires to be proved by evidence such as transport document, recovery of excess stock or payment for the unaccounted clearances and statements of the concerned persons admitting clandestine removal. In this particular case, the admission is only relating to shortage of the finished goods. No other evidence which can substantiate the finding by the original authority that the goods were cleared clandestinely has been relied upon. Under these circumstances, the decision of the Commissioner (Appeals) in setting aside the penalty imposed under Section 11AC is in order The original authority has imposed penalty on the authorized signatory holding that he was not only having knowledge/full control over the day-to-day affairs of the party and that he was aware of all the activities being carried out in the factory of clandestine removal of the goods found short, as well as he was actively involved in such fraudulent removals. This inference is not supported by any evidence. The only admission is the admission of shortage by Shri Rajesh Agrawal. Therefore, there was no justification for imposition of penalty on Shri Rajesh Agrawal also. Appeal dismissed.
|