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2015 (1) TMI 665 - CESTAT NEW DELHIClandestine removal of goods - Imposition of penalty - Held that:- It is admitted fact that investigation into the case of Kailash Agarwal, Commission agent and Shree Bajrang transport resulted in recovery of incriminating evidence against the appellant company. None of the documents recovered imputing them to the charge in the adjudication order and allegation in Show Cause Notice could be disowned by any of the parties. The appellant Company failed to lead evidence in its defence and materials recovered could not be discarded. Kailash Agarwal and Shree Bajrang Transport provided cogent and credible evidence against the appellant company. All the parties were intimately connected with each other and proved removal of goods by appellant company from its factory without payment of duty. The seized register from Shree Bajrang Transport successfully proved date wise clearance of goods without payment of duty. That revealed questionable modus operandi of these appellants and link of the directors surfaced. - Considering the quantum of demand of duty of ₹ 1,08,98,297/- and equal amount of penalty, followed by interest against duty demand on the appellant company, we direct the appellant M/s. Shree Nakoda Ispat Ltd. to deposit ₹ 70 lakhs ( adjusting any amount if paid prior to this order) within six week. So far as the appellant Sri Anant Dave, Director of appellant company is concerned, he has faced penalty of ₹ 20 lakhs. We do appreciate that without human intervention a corporate solo does not function. Directors are regulator of business of the company. For breach of law and evasion, they are answerable to law. Therefore Sri Anant Dave is to make deposit ₹ 10 lakhs within six weeks So far as appellant Sri Sanjay Goel, Director is concerned, he has faced penalty of ₹ 20 lakhs. Prima facie, nothing has been brought to our notice about active involvement by this appellant. So this director is not directed to make any pre-deposit of penalty at this stage. So far as appellant Sri Kailash Agarwal, agent is concerned, we have already passed an order against this appellant appreciating his role in evasion. Keeping that in view and maintaining consistency, we are of the view that this appellant being contributory to the loss of Revenue, he is directed to deposit ₹ 1 lakh within six weeks - Decided partly in favour of appellants.
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