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2015 (4) TMI 1113

Head Note:
Application for settlement - evasion of duty - Held that:- In the instant case, a SCN F. No. 65/KZU/KOU/Gr.A/13/5430-31, dated 23-7-2014 was issued demanding duty amounting to ₹ 18,53,489/- (including duty of ₹ 17,99,504/-, Education Cess of ₹ 35,990/- and Secondary and Higher Education Cess of ₹ 17,995/-) on a shortage of 882,110 M.T. of Sponge Iron. The evasion of duty on this quantity of 882.110 M.T. has been admitted by the applicant and also by the co-applicant, Shri Ram Chandra Rungta, in their applications for settlement. The removal of 882.110 M.T. of Sponge Iron has also been admitted by the co-applicant, Shri Ram Chandra Rungta, in his statement dated 16-4-2013. The applicants have admitted that they were engaged in unaccounted manufacture and clandestine removal of finished goods without payment of Central Excise duties in a planned manner. The co-applicant, Shri Ram Chandra Rungta, in his statement dated 16-4-2013 has also admitted that he is one of the Directors of the company and is overall in-charge of the company including production, clearance and finance including direct and indirect taxation. He has also admitted removal of 882.110 M.T. of Sponge Iron without abiding by the Central Excise formalities and also admitted that even the raw material for manufacture of the unaccounted finished goods cleared from their factory without issuing any Central Excise invoices, was also not entered in their books of Account. Thus, there is no doubt that the applicants were knowingly engaged in unaccounted manufacture and clandestine removal of finished goods without payment of Central Excise duties in a planned manner. Therefore, they do not deserve full immunity from penalty.

The Bench imposes penalty of ₹ 3,75,000/- (Rupees three lakhs and seventy-five thousand only) on the applicant M/s. Maa Chhinnamastika Cement & Ispat Pvt. Ltd. and ₹ 1,85,000/- (Rupees one lakh and eighty-five thousand only) on the co-applicant Shri Ram Chandra Rungta and grants immunity from penalty in excess of these amounts. The amounts of penalty should be paid within 30 days from the date of receipt of this order.

Prosecution - Subject to the payment of the aforesaid amounts, the Bench grants immunity to the applicants from prosecution under the Act and Rules made thereunder in so far as this case is concerned.All the above payments and appropriation should be completed within 30 days from the date of receipt of this order.

The above immunities from penalty and prosecution to the applicant and co-applicant are granted under sub-section (1) of Section 32K of the Act subject to the provisions contained in sub-sections (2) and (3) of Section 32K ibid.

 


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