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2018 (11) TMI 491 - AT - Central ExciseClandestine removal - penalty u/r 209A of Central Excise Rules, 1944 on Shri Ajay Shah and on M/s Royal Synthetics - unaccounted production and clandestine clearance using the cover of legitimate invoices repeatedly while recording the production of ‘alkyd’ and ‘maleic’ resin - Held that:- The proceedings against Shri Ajay Shah is not based on a separate set of evidences relating to his particular role as distinct from M/s Royal Synthetics. Therefore, the imposition of penalty on him under rule 209A of Central Excise Rules, 1944 is not in accordance with the law. Applicability of Rule 209A on M/s Royal Synthetics - Held that:- The impugned order has rendered elaborate findings on the manner in which M/s Royal Synthetics stood to gain from the handing of goods that had been clandestinely removed from the premises of M/s Universal Polymers and the active collaboration that enabled the disposal of unaccounted production of M/s Universal Polymers. The findings per se are not contributed by Learned Counsel for appellants - The unquestioned documentary evidence would suffice to establish the clandestine removal and the handling of such goods by M/s Royal Synthetics. In the circumstances, the appeal of M/s Royal Synthetics fails to find favor. The penalty imposed on Shri Ajay Shah is set aside while the penalty imposed on M/s Royal Synthetics is confirmed - appeal allowed in part.
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