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2017 (10) TMI 336 - CESTAT BANGALOREClandestine removal - Shortage of goods - molasses - penalty - Held that: - there is no mitigating or ameliorating factors in favor of the appellant No.1 M/s. VPPL to further reduce the penalty imposed on them. The facts on record clearly prove that there has been clearances of molasses initially of 53.520 MTs through four tankers, where no Central Excise invoices accompanied the goods. Further, there has been no reasonable explanation for the shortage of 1055.68 MTs of molasses found in the factory of the appellant-company, when compared with the stocks recorded in RG-1 Register. When it is so, the penalty imposed of ₹ 1 lakh on the appellant No.1 cannot be reduced further - penalty upheld. The penalty of ₹ 5,00,000/- has been imposed on appellant No.2, whereas he contests that day-to-day affairs were looked after by Lab In-charge. He has been only overall in-charge of the appellant-company. However, the appellant No.2 being overall in-charge cannot completely absolve himself of the responsibility of complying with the law of Central Excise in respect of payment of appropriate duty of Central Excise and following the right procedures as prescribed by the law of Central Excise - considering the fact that he has been overall in-charge and not looking after day-to-day affairs of the factory and when the appellant no.1, who are the main offenders and main noticee, have been imposed a penalty of ₹ 1 lakh, the quantum of ₹ 5,00,000/- imposed on appellant No. 2 does not seem to be proportionately appropriate. Considering the fact that the main accused has been imposed a penalty of ₹ 1 lakh, the penalty imposed on the appellant No. 2 is reduced from ₹ 5,00,000/- to ₹ 50,000/-. Appeal allowed in part.
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