2001 (7) TMI 414

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..... ndent. [Order]. - This appeal is directed against Order-in-Appeal No. 1081, dated 19-12-2000 of the Commissioner of Central Excise (Appeals), New Delhi. Under the order the Commissioner upheld duty demand of about Rs. 86,000/- and confirmed penalty of Rs. 50,000/- on the appellant. 2. The case relates to shortage of finished goods and raw material observed in the appellant's factory upon .....

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..... ted by the Assistant Commissioner under Order No. 416/98-99, dated 28-1-1999 confirming duty demand of Rs. 86,483/- and imposing penalty of Rs. 86,000/- under Rules 173Q and 226 of the Central Excise Rules. The impugned order in appeal was passed by the Commissioner (Appeals) on the appeal filed against that adjudication order. 3. The submission of the appellant is that the entire raw materi .....

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..... 4. The shortages have been observed during stock taking. There is no direct evidence of clandestine manufacture and removal without payment of duty. The appellant has paid the duty in full in respect of the materials found shortage. In view of these facts and circumstances, the penalty is reduced to Rs. 10,000/-. Subject to this reduction in penalty the impugned order is confirmed.
Case .....

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