Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 816 - AT - Central ExciseClandestine removal of goods - Whether the adjudicating authority is correct in confirming the demand raised against the main appellant and imposing penalties on the main appellant as well as other individuals on the charge of clandestine removal of the goods i.e. printed and dyed MMF fabrics - Held that:- adjudicating authority or the investigating authority have not conducted further investigation to come to a conclusion that the figures indicated in the note book at Page No.9 for the period July to September 2002 are not an amount which is shown as receivable for clandestinely cleared goods. In our considered view, there being no other evidence to indicate that these figures were amount due for the clandestine removal of the goods, reliance placed only on the circumstantial evidences may not carry the case of the Revenue any further. To that extent, we find that the appellant has made out a case for holding that the duty liability ₹ 80,89,255/- for the period July to September 2002 is unsustainable and is liable to set aside. In sum, for the period October 2002 to December 2002, we hold that the demand of the duty liability can be confirmed on the main appellant only for the quantity of man made fabrics cleared to M/s Sangam Prints, M/s Neha Prints as recorded at Paragraph No.13 of the Order-in-Original. To that extent, the appeal filed by the appellant is rejected. Lower authorities are directed to calculate the amount of duty liability on the man made fabrics of 9,33,085 LMs and 1,31,309.75 LMs cleared to these two purchasers. Appellant is also required to pay interest at appropriate rate on all these amounts of duty liabilities. Regarding penalties - Held that:- As regards the penalties we find the main appellant is to be penalized with equivalent amount of duty liability as has been worked out by the lower authorities on the clearances made to M/s Sangam Prints, M/s Neha Prints as indicated hereinabove with an option to pay 25% of the duty liability as per Section 11AC of Central Excise Act, 1944, as has been held by Hon'ble High Court of Gujarat in the case of Akash Fashions Prints Pvt.Ltd. [2009 (1) TMI 113 - GUJARAT HIGH COURT]. These our findings are based upon the fact that the adjudicating authority in the impugned order, has not extended this benefit to the main appellant - Decided partly in favour of assessee. Levy of penalty on recipient of goods - Held that:- Since they were aware that the goods are non duty paid, penalty under Rule 26 is imposable on them also, which in our considered view, should be in proportion to the quantity of the goods received by them. The ends of justice will be met by imposing a penalty of ₹ 1 lakh (Rupees One Lakh only) on Shri Brij Mohan Agarwal.
|