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2018 (6) TMI 770 - AT - Central ExciseClandestine removal - suppression of facts - excesses of finished goods - shortages of raw materials - admissibility of statement - Section 9D of CEA - Held that:- The average daily production of the appellant plant is 30–32 MT, have not been disputed by revenue. For the disputed period under consideration from 03/01/2009 to 19th February, 2009 there are 48 working days or days multiplied by said 32 MT per day, the maximum production during the said period works out to (48x32) or 1536 MT. Thus, the calculation of revenue of production of 2214.434 during the said period is erroneous and excessive, and needs to be reworked. Further, the appellant will be entitled to set of, as regards shortage of raw material– M.S. Ingots from the excess stock of finished goods, as on the date of inspection. Accordingly, the appellant shall be liable for duty towards clandestine removal, as recalculated, as per dirdections. The penalty amount on the appellants company shall be worked out accordingly - the penalty imposed on the appellant-Director appears to be excessive and the same is reduced to ₹ 2 lakhs. Even by the rule of thumb, and the production reworked out on the basis of admitted average production, there exists element of clandestine production and removal. Appeal allowed in part.
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