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2017 (5) TMI 176 - AT - Central ExciseClandestine removal - parallel invoices - entries in ISI register - demand of duty with interest and penalty - Held that: - the demand on account of shortage on finished goods and raw material used in manufacture of clandestine removal of goods of ₹ 67,660/- and ₹ 1,14,571/- respectively are not sustainable - As the short found goods have been cleared on the strength of parallel invoices/entries made in shipra note book and no other positive evidence has been produced by the Revenue for clearances of the finished goods found short and raw material found shortage used in manufacturing of the finished goods. As the appellant has cleared two or three times more than of the quantity entered in ISI register , therefore, the entries made in ISI register cannot be the basis of the demand of duty on account clandestine clearance of the goods. Penalty - Held that: - As the appellant has paid an amount of ₹ 4 lacs during the course of investigation itself. In that circumstances, the penalty is reduced to 25% of the duty confirmed on the main appellant which shall be payable by the appellant within 30 days of the receipt of this order failing which the appellant shall be liable to pay 100% of the duty confirmed as penalty. Penalties on directors - Held that: - without the knowledge of the directors, the goods cannot be cleared clandestinely, therefore, the penalties on both the directors are sustainable. Appeal allowed - decided partly in favor of appellant.
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