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2017 (10) TMI 14 - AT - Central ExciseClandestine manufacture and removal - copper tube - Penalty - Held that: - appellant Shri Dilip Kothari, Shri Sudhir Kothari and Shri Ajay Vyas who are the proprietors of their respective proprietorship firms have in their statement recorded by the lower authorities categorically admitted that they had issued blank challans/invoices to M/s SMTPL. The said blank challans/invoices were used by the said SMTPL for clandestine removal of the manufactured goods under the guise of trading activity - there is element of collusion by these three trading firms with SMTPL with intent to evade duty - The appellants having confessed to handing over of the challans and also to the fact that they were in fact aware of the clandestine removal of the goods by the said SMTPL, we have to uphold the findings that all the three appellants herein are aware of the act that M/s SMTPL is going to remove the excisable goods clandestinely - all the three appellants are liable for imposition of penalty under Rule 26 of the Central Excise Rules 2002, the quantum of penalty reduced to ₹ 5,00,000/- each. As regards penalty imposed on Dhiran Transport Corporation, there is no rebuttal to the adjudicating authority's findings that the said Dhiran Transport Corporation had not issued any LRs for the transport of the goods clandestinely removed from SMTPL premises but have issued unauthorised unsigned slips, due to which it could not be said that the said Dhiran Transport Corporation was not aware of the unauthorised removal of the goods from SMTPL's premises - penalty upheld - quantum of penalty reduced to ₹ 2,00,000/-. Appeal allowed - decided partly in favor of appellant.
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