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2017 (9) TMI 543 - CESTAT MUMBAIPenalty u/r 26 - Clandestine removal - Shortage of goods - penalty imposed on mere belief and not on corroborative evidences - Held that: - the adjudicating authority in the denovo adjudication confirmed demand of ₹ 42 lacs but since the appeal of M/s. Sunrise Zinc Ltd stand dismissed as on date, demand of Rs, 42 Lacs stands upheld. As regard the role of Shri. Pankaj Jaju, he was actively involved in the entire operation being Executive Director of M/s. Sunrise Zinc Ltd. - It is also found that though the Ld. Counsel has submitted that while imposing penalty charge of belief of confiscation of the goods is not made by the adjudicating authority. However in the findings given in para 51.4, it is clearly held that Shri. Pankaj Jaju knows and had reason to believe that goods were liable to confiscation therefore he was liable for penalty under Rule 26. As regard the penalties on the other persons i.e. Victor Industries, Crown Indystries Unique Trading Corporation and Suman Bardia, they are not related to the company who has indulged in the clandestine removal i.e. M/s. Sunrise Zink Ltd. However they were involved in dealing with the goods which were cleared clandestinely therefore their involvement in not direct but indirect involvement was very much established. The penalty imposed on the appellants are excessive which deserve to be reduced considering the nature of the case and their role. Since the duty should not have been confirmed to the tune of ₹ 42 Lacs, the penalty commensurate to the said amount is also not proper. The penalty on Shri Pankaj Jaju reduced from ₹ 25 lacs to ₹ 4 Lacs and on other appellants i.e. Unique Trading Corporation penalty of ₹ 2 lacs to ₹ 25,000/- In respect of Victor Industries, Crown Industries and Suman Bardia, penalty of ₹ 15,000/- reduced to ₹ 10,000/-. Appeal allowed - decided partly in favor of appellant.
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