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2013 (9) TMI 1006 - AT - Central ExciseSuppression of production of goods - Clandestine removal of goods - Imposition of penalty - Held that:- Receipt of the material has been admitted by Shri Jagdish Prasad Tak, the factory in charge and authorized signatory of the appellant firm in his statement dated 26-7-2004. Sale of the said material to the appellant has been confirmed by M/s. Hind Silk Mills also in their letter dated 14-9-1994. The appellant in their letter dated 30-7-1994 addressed to the investigating agency has confirmed that they had not entered the receipt of the said goods in their Form IV register and that they were voluntarily depositing the duty amount of ₹ 28,33,303/- towards the textured yarn manufactured and cleared without payment of duty out of the POY received from Hind Silk Mills. Shri Arun Bhartia, Director of the appellant firm in his statement dated 25-10-1994 has confirmed the above facts. Thus the receipt of the said material and consumption of the same in the manufacture of PTY and clearance without payment of duty is clearly established and supported by the relevant records and statements. Appellant’s plea subsequently that these shortages were lying as work-in-progress is clearly an afterthought and has been rightly rejected by the adjudicating authority. In the light of these evidences, the conclusion of the adjudicating authority that the quantity found short was cleared by the appellant without payment of duty cannot be faulted at all. Once the charge of suppression of production and clandestine removal stand established, penal consequences under Rule 173Q automatically follows. Therefore, imposition of penalty on the appellant firm under Rule 173Q(1) and confiscation of land, building, plant and machinery under Rule 173Q(2) are mandated under the law and the quantum of penalty or fine imposed is not harsh or excessive when considering the amount of duty sought to be evaded. - Decided against assessee.
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