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2016 (2) TMI 251 - AT - Central ExciseDemand of duty on the goods clandestinely removed from the factory premises - Held that:- There is enough evidence to indicate that the goods were cleared clandestinely without payment of duty by appellant No.1 to various purchasers. On that account there is no case; imposition of penalty on Shri Champsi M. Shah, find that appellant has no case and it has to be held that the first appellate authority as well as the adjudicating authority are correct in coming to such conclusion. At this juncture, the prayer of the learned Counsel needs to be addressed as to consider the amount indicated as cum-duty value. The said plea of the learned Counsel is strongly supported by the judgement of Amit Agro Industries Ltd. (2007 (3) TMI 14 - SUPREME COURT OF INDIA ). As also in the case of CCE v. Maruti Udyog Ltd. (2002 (2) TMI 101 - Supreme Court) wherein the ratio has been that any amount collected on which duty is demanded needs to be considered as cum-duty value. Respectfully following the same, the value indicated in the show-cause notice has to be considered as cum-duty and duty liability needs to be quantified working back on appellant No.1 accordingly. Appellant having discharged the entire duty liability and the interest thereof, considering the amount collected as cum-duty value is to be accepted. The penalty imposed under Section 11AC should be the equivalent amount of duty as re-quantified and to be discharged by appellant No.1. As regards the penalty on Shri Champshi M. Shah, it has been correctly imposed under the provisions of Rule 26 of the Central Excise Rules, 2002.In short, except for the modification of holding that the value as cum-duty value and reworking of demand of duty, appeals are rejected.
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