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2013 (8) TMI 535 - AT - Central ExciseShortage in Stock on inquiry – Failure to explain the shortages – Held that:- Shortage of 32.174 M.T. of final product – Party’s repeated failure to explain the reasons for the said shortage which is substantial in nature - It is clear that the party has surreptitiously cleared the said final products without payment of appropriate duty and without observing the mandatory formalities - Supressed the facts of such removal, with intention to evade the payment of duty - Thereby attracting the proviso to Section 11 A (1) of the Central Excise Act, 1944 – Also, in the case of Nabha Steels Limited versus Commissioner Central Excise, Chandigarh [ 2004 (169) E.L.T. 345 (Tri.-Del.) shortage of Ingots was found on physical verification and admitted by the Director and the duty involved was debited. Penalty was imposed - Facts are almost similar in this case. Decided in favor of Revenue. 25% of Penalty paid – Held that:- Correct as per legal provisions and Board’s circular No.831/08/2006 Dt. 26.07.2006 - 100% penalty should be levied - Once respondent have exercised the option to pay 25% penalty within specified time it is correct in view of facts and legal provisions. Decided against the Revenue.
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