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2016 (12) TMI 156 - CESTAT HYDERABADImposition of penalty - SSI exemption - clandestine removal - suppression of facts - Held that: - only part of the clearances made were accounted in SBI account of the unit. The super stockists/buyers have been making the deposits towards some part of the goods received by them in the KVB account of the Director. Though it is contended by the appellant unit that the said amounts deposited by the super stockists/buyers were withdrawn and deposited in the SBI account of the appellant unit on the same day or next day, the argument that this would prove that there were no accounted sales, is not tenable or acceptable. The modus-operandi of depositing the sale proceeds in to the KVB account of Director and thereafter re-depositing or transferring the same into the account of appellant unit can only be to cover up the unaccounted clearances. By such practice, the SBI account of appellant unit would reflect such amounts as transferred /withdrawn and deposited from KVB account of Director and not as amounts received from clearances of goods. It is crystal clear that this is an effort to cover up the unaccounted sales - there has been unaccounted sales which the appellant has not been able to explain properly. The activity of clandestine clearances having been established, I do not find any grounds to interfere with the equal amount of penalty imposed on the appellant unit. The facts and evidences establish that the Director Shri L Danunjaya had a consciouse role in the above activities of unaccounted sales. However, the penalty of ₹ 40 000/- imposed on the Director is on the higher side. I am of the view, that the penalty of ₹ 10,000/- would meet the ends of justice. Penalty of ₹ 25,000/- has been imposed on Sri K.Shivakamini Kumar which in my opinion is unwarranted. The said person is only an employee ie., Finance Manager of the appellant unit. The penalty imposed on Shri Shiva Kamini Kumar is therefore, set aside. Appeal disposed off - decided partly in favor of appellant-assessee.
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