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2016 (12) TMI 774 - CESTAT CHENNAIEvasion of duty - clandestine removal - imposition of penalty - Held that: - The evidences gathered from three persons corroborated the questionable modus operandi of the appellant company as has been recorded in para 60 of the order. That establishes that there was proper application of mind by the adjudicating authority demonstrating loss of Revenue - Being satisfied that there was no evidence to rebut the finding of the adjudicating authority, we uphold the impugned order in so far as the appellant M/s. Selvakumar Spinners Pvt. Ltd. is concerned. In so far as penalty on the Managing Director is concerned, discarding plea of innocence by appellant it is submitted by Revenue that the Managing Director was involved consciously in evasion for which no reduction in penalty is permissible. The adjudicating authority appears to have presumption of conscious involvement of the Managing Director in para 61 of his order finding that there was knowledge and consent of the Managing Director to cause evasion. But his finding is not based on any cogent evidence. No doubt, pre-ponderance of probability is in favour of Revenue. But the penalty proceeding being qusi-criminal in nature, that cannot be imposed mechanically. However considering totality of facts and circumstance of the case and extent of evasion as well as human intervention in causing evasion, it is considered that imposition of penalty of ₹ 50,000/- on the managing Director is Justified. Appeal disposed off - decided partly in favor of appellant.
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