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2022 (10) TMI 466 - AT - Central ExciseClandestine removal - 3996.286 MT formaldehyde (including 262.400 MT found short) - Shortages detected in the stock - HELD THAT:- There is no reasonable explanation in the impugned order and also in the previous order of this Tribunal, whereby the clandestine removal of finished goods have been alleged at 1378.595 MT of formaldehyde. The actual/installed capacity of production have been ignored, which has caused prejudice to the appellant. It is further found that the appellant have already suffered civil consequence by the impugned order in view of duty both on the allegation of clandestine removal as well as on the shortage of finished goods and raw materials. It is further found that not a single instance of clandestine removal have been found by revenue by way of interception of any consignment without proper invoices/challan etc. There is not reasonable basis for imposition of penalty under Section 11AC/Rule 209A of the Central Excise Rules, 1944 - the penalty set aside under Section 11AC on the appellant company and also the penalty imposed on the two directors Shri Promod Lunawat & Shri Mukesh Singhaniya under Rule 209A of Central Excise Rules, 1944 are set aside. Appeal allowed.
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