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2015 (8) TMI 148 - AT - Central ExciseDuty demand - shortage of fabrics - Suppression of facts - Invocation of extended period of limitation - Held that:- Show-cause notice was issued for confiscation of the excess goods seized at their units. The adjudicating authority had decided the said show-cause notice and imposed penalty under Rule 173Q for improper maintenance of statutory records. From the above, we find that the proceedings initiated in the show-cause notice dated 14.8.2000 was entirely different and it is only related for the excess stock found in the premises which was not accounted in the RG-I Register and there was no demand since the physical goods were available, the adjudicating authority has not ordered for confiscation as there is no likelihood of removing clandestinely whereas in the present case the show-cause notice relates to the demand of excise duty on the shortage of goods for the past period and the facts in the first show-cause notice are different from the facts in the present show-cause notice. - demand of duty on the shortage of goods confirmed by the adjudicating authority is sustained. As regards limitation, the present show-cause notice is issued for demand of duty on the shortage of goods noticed for the period in dispute and has no relevance with the first show-cause notice dated 14.8.2001. Therefore, appellant’s reliance on the Hon’ble Supreme Court’s decision is not applicable to present case. Statements recorded from various persons clearly prove the continued shortage of goods over the period. The very fact that the appellant themselves have constituted two committees, as directed by CAG Audit Report, proves that there was huge shortage where the appellants were unable to explain the reasons with clear evidence. Therefore, we hold that the adjudicating authority has rightly confirmed the demand and invoked the extended period as there was clear suppression of facts. - demand of excise duty on the huge shortage of finished goods and imposition of equal penalty with interest is liable to be upheld. - Decided against Assessee.
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