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2015 (9) TMI 1321 - AT - Central ExciseClandestine removal of goods - Shortage of goods found - Imposition of penalty - Held that:- There was shortage of finished goods of bars and rods weighing 36.830 MT on the date of visit of officers on 06.11.1996. The authorized representative of the appellant company clearly admitted the shortage as due to removal without accounting and without payment of duty. The use of parallel invoices for clearing unaccounted excisable goods without payment of duty stands admitted by the authorized signatory. The Director, Shri Laxmandas Manwani while admitting having authenticated the invoice book claimed that he has not given instructions to clear any goods without payment of duty. - authorized signatory has not retracted his statement. The Directors at the time of investigation merely pleaded ignorance of the day-to-day activities relating to production and clearance and that they have not directed Shri Joshi to indulge in clandestine removal. In view of the above, the duty demand amounting to ₹ 39,87,886/-on clearances relating to 1st June 1996 and 31.10.96 as well as demand of ₹ 67255/- on the shortage found are upheld. As regards the penalty imposed, I note that the provisions of procedure of section 11AC are applicable from 26.09.1996 and the amount of demand relating to the period October 1996 having been quantified as ₹ 4,08,866/-. I, therefore, reduce the penalty - Decided partly in favour of assessee.
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