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2019 (5) TMI 1286 - CESTAT CHANDIGARHClandestine removal - shortage of 3135 Kgs of writing and printing paper - demand of duty has been confirmed on the basis of documents/ledger recovered during the course of investigation and on the basis of the records recovered from Transport Union Munsi Shri Mohan Singh - cross-examination denied - imposition of penalties - HELD THAT:- The appellants sought cross examination of the persons from whom the documents have been recovered and the buyers of the goods whose statements have been relied upon by the Revenue, but no such cross examination has been granted, therefore, there is a gross violation of procedure laid down under Section 9-D of the Central Excise Act, 1944. As it is a matter of 17 years old, therefore, no purpose shall be served by remanding matter back to the adjudicating authority for cross examination as held by this Tribunal in the case of M/S. MANISH VINYLS, SHRI O.P. KHETAN, DIRECTOR VERSUS CCE, FARIDABAD [ 2019 (4) TMI 434 - CESTAT CHANDIGARH ], in that circumstances, as demand is on the basis of the documents which have not been proved by the Revenue with corroborative evidence, the demand of ₹ 33,27,521/- is not sustainable. The said demand is set-aside and remaining demand of duty is confirmed as admitted by the appellant - further as the appellant has paid an amount of ₹ 5,64,611/- alongwith interest and 25% penalty within 30 days of the passing of the order, the said demand is confirmed alongwith interest and penalty is reduced to 25% of ₹ 5,64,611/- against M/s Shreyans Industires Ltd. Penalty imposed on Shri Anil Kumar, Executive Director - HELD THAT:- No statement has been able to prove that Shri Anil Kumar was ever having knowledge of clandestine removal of goods, therefore, the penalty on Shri Anil Kumar is not sustainable. Penalty imposed on the other appellants - HELD THAT:- As per the statements recorded during the course of investigation and admission by the appellants, therefore, they cannot escape from their liability of penalizing on them who were engaged in clandestine removal of goods, therefore, the penalty is imposable on the appellants, but, a penalty of ₹ 2,00,000/- has been imposed on M/s Gian Chand Krishan Chand, the penalty is on higher size, the same is reduced to ₹ 25,000/-. Penalty imposed on Shri Raman Marwaha - HELD THAT:- The penalty is reduced to ₹ 50,000/-, penalty imposed on Shri R. K. Mahajan and Shri Vivek Shirotiya to 20,000/- each and penalty imposed on Shri Puneet Kumar is reduced to ₹ 10,000/-. Appeal allowed in part.
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