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2022 (6) TMI 1211 - AT - Central ExciseLevy of Penalty u/r 26 of CER, 2002 - Allegation of clandestine removal - Failure to account for the manufactured goods properly and on visit of the officers, the excess goods were found which was lying unaccounted - Polished vitrified Tiles - appellant claims that the unaccountal of goods is due to mis-match and cessation of the factory and the concerned staff has left the job - Confiscation of such excess found goods - Redemption Fine - Penalty - HELD THAT:- It is found from the facts, that the appellant in his statements recorded by the investigating agency nowhere stated that the goods found excess in the factory were lying for clandestine removal therefore, the serious allegation made by the department that the goods were kept for clandestine removal without payment of duty is not supported by any evidence. The appellant has stated in their statement that the unaccountal of goods is due to mis-match and cessation of the factory and the concerned staff has left the job therefore, even though the goods were found unaccounted for which the company has been imposed with redemption fine and penalty, personal penalty cannot be imposed on the Chairman and MD of the company who is not looking after the accountal of the goods manufactured. The only lapse on the part is that being the Chairman and MD of the company, he has not ensured that the proper accounting of the finished goods is being done or not for which a token penalty can be imposed. The penalty is reduced from Rs. 5 Lacs to Rs.1 Lac - the impugned order stands modified to the above extent - Appeal allowed in part.
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