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2015 (10) TMI 2196 - AT - Central ExciseClandestine removal of inputs and finished goods - Shortage of goods founds - Held that:- Shortage of MS scrap is correct as they have been sold by the appellant the scrap in the local market to various individual traders without preparing any bills. With respect to shortage of SS Slabs, it was stated by Shri Mohammed Kaizer, Director, that they have cleared the goods without preparing any bills. On a specific question asked by the investigating officer as to whom the scrap and finished goods were sold, the appellant was not able to give the records for such sale. In the absence of addresses of the persons to whom the scrap and the finished goods were sold, investigating authorities cannot be faulted to carry out further investigation of the buyers. Shortage of raw materials, admitted by the appellant in spite of the fact that certain MS Scrap was under process on the day of visit of the Central Excise officers indicates that the main appellant was in the practice of receiving raw materials unscrupulously and using the same in the manufacture of finished goods removed of clandestinely. Inspite of some MS Scrap in process and lying near the furnace, in his statement the Director of the main appellant did not claim that raw materials in stock was incorrectly taken by the Dept. Officers. The statements taken by the investigators are not retracted. Therefore, taking a stand during appeal proceeding that stock taking of the raw-materials was done incorrectly is not sustainable. So far as duty liability on the clandestinely removed SS Flats is concerned Adjudicating Authority should rework out the duty liability after allowing the benefit of cum-duty benefit and intimate the same to the appellant. After reworking of duty liability with respect to finished SS Plates, main appellant will be eligible to exercise 25% option of reduced penalty, if the duty is paid along with interest and penalty within one month from the receipt of such communication from the Adjudicating Authority. So far as imposition of penalties upon the other appellants is concerned, it is observed that they were involved in the clandestine removal of raw-materials and the finished goods. Therefore, the penalty imposed by the Adjudicating Authority upon the appellants is justified and has been correctly upheld by the first Appellate Authority - Decided partly in favour of assessee.
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