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2005 (11) TMI 143 - AT - Central ExciseClandestine removal - Proof of 'Mens Rea' - Show cause notice - Limitation - Evidence for the payment of duty on the inputs - Demand duty - HELD THAT:- We find that the Adjudicating Authority has reached his conclusions not only on the basis of the statements of the concerned persons but also the various incriminating records seized. We hold that the statements have been corroborated by the records seized. Even unaccounted raw materials and finished goods have been seized. There is no infirmity in the Adjudication Order. A modus oprendus has been deviced to evade Central Excise duty systematically. Hence, invocation of longer period is sustainable. The levy of penalties on the appellants is justified. The seized goods are liable for confiscation. Hence, the Order of confiscation of the seized finished goods and raw materials is upheld. As per the mandatory penalty u/s 11AC is concerned, we feel that the ends of justice could be met, if the same is limited to 50% of the duty liability. The appellants had pleaded before the adjudicating authority that the Modvat credit benefit should be given to them, as several inputs have suffered duty. The adjudicating authority has denied the same on the ground that the appellants had to fulfill certain statutory requirements before availing Modvat credit. We feel that when the Revenue is demanding duty on the final products, the Modvat benefit should be given provided there is sufficient evidence for the payment of duty on the inputs. Therefore the duty liability has to be recalculated on the basis of the documentary evidence available with the factory during the relevant time for payment of duty on the inputs. The Adjudicating Authority's denial of SSI benefit to the appellants is upheld. Interest u/s 11AB is also upheld. The case is remanded to the original authority to compute the duty liability in terms of the above observations. The confiscation of goods and imposition of redemption fines and adjustment of liability towards currencies seized are upheld. The appeals are disposed of in the above terms.
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