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2014 (3) TMI 633 - CESTAT NEW DELHIPenalty u/s 11AC - Shortage in stock - Clandestine removal of goods - Held that:- respondent are engaged in the manufacture of dies, Gen. Set, A.C. Generator, I.C. Diesel Engines and C.F. Water pumps falling under chapter 84 and 85 of the Central Excise Tariff. The factory premises of the respondent were visited by the Revenue Officers and it was found that there was shortage and excess in the stock of finished product. The goods which was in excess were seized and the adjudicating authority confiscated the goods and allowed the same on redemption fine. The goods which were found short, the adjudicating authority confirmed the demand and imposed the penalty under Section 11AC of the Act. During verification 18 units of A.C. Generator, 58 nos. of Diesel Engines, 40 nos. of C.F. Water Pumps and 12 nos. of diesel set found short against the quantity mentioned in the statutory record. The respondent cannot putforth any valid reason behind the shortage of finished goods. The respondent accepted the shortage and deposited the amount of duty. finding of the Commissioner (Appeals) that it is a case of improper accountal of finished goods is not sustainable. As the finished goods were found short and there is no explanation putforth by the respondent, therefore, the impugned order whereby the penalty imposed under Section 11AC is set aside is not sustainable - Decided in favour of Revenue.
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