2007 (5) TMI 417

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..... Respondent. [Order]. - These appeals are against the order of the Commissioner (Appeals) Nos. YPP/842-844/SRT/2003 dated 5-12-2003, by which the Commissioner (Appeals) rejected the appeals against the order of the original authority dated 25-2-2003. 2. Heard both sides. 3. The relevant facts, in brief, are as follows: (a)     When the officers visited the appell .....

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..... resh grey fabrics were procured and substituted. (d)    The 13 merchant manufacturers who were contacted claimed that they had supplied grey fabrics but claimed that they had not received back the processed fabrics. Another director of the company, Shri Naresh Kumar Agarwal, in his statement, given on 5-2-2002 reconfirmed the unaccounted production and clandestine removal. (e)&nbs .....

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..... r Section 11AB is not permissible. 4.2 As regards the penalty imposed on the appellant company, the penalty imposed is a composite penalty imposed under Rule 173Q read with Section 11AC and such composite penalty cannot be sustained as there was no application of mind and segregation of penalty on the part of the original authority. Even if the penalty is sustained, he seeks for leniency. As .....

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..... es. The unaccounted production and clandestine removal are not in dispute as the duty involved has been paid on 29-10-1997 itself. 6.1 As regards the interest, in the absence of identification of date of clandestine removal, it is not incorrect to hold that admitted clandestine removal has taken place on any day before 5-10-97. Therefore, the interest shall be calculated holding that clandes .....

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..... the production and clandestine removal of goods. Para 15 of the show cause notice and Para 29 of the order-in-original clearly bring out that they have knowingly concerned themselves in dealing with the goods liable for confiscation and therefore, penalty is warranted. However, taking the entire facts and circumstances of the case into account, penalty is reduced to Rs. 5,000/- on each of the two .....

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