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TMI Blog2014 (9) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... paying documents and without payment of Central Excise duty. Out of the total quantity of 65 bales of Grey Cotton Fabrics seized, 40 bales of Grey Cotton Fabrics belonged to the appellant. Immediate stock verification of finished goods in the appellant's factory, it was noticed a shortage of grey cotton fabrics of 49,831 mtrs. The adjudicating authority in his order confirmed the demand of Rs. 83,467/- and also appropriated the same from the cash security of Rs. 1,65,000/- paid by the appellants vide TR.6 challan No.9/03-04 dt. 16.3.2004 during provisional release of the seized goods and also confirmed interest and imposed equivalent penalty under Section 11AC of the Central Excise Act, 1944. He also confiscated 38,889 mtrs. of Grey Fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransporter. The seized goods were released provisionally and the same were allowed to be taken in their RG.1 Register and cleared subsequently on payment of duty. This amounts to double payment of duty. He also submits photocopy of extract of RG.1 Register and also copy of the order dt. 13.1.2006 passed by the Asst. Commissioner thereby the duty demand is re-quantified and reduced from Rs. 83,467/- to Rs. 18,328/-. Accordingly, penalty also was reduced proportionately. Further, he submits that if revised duty demand is taken into account and the same is already appropriated from the cash security of Rs. 1,65,000/- paid during investigation, they are eligible for 25% of the penalty as per Section 11AC (1) (c) of the Central Excise Act. He su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had re-quantified the duty liability and the penalty as per the Commissioner (Appeals) order which is reproduced as under :- "1. I reduce the Central Excise Duty demanded from Rs. 83,467/- to Rs. 18,328/- (Rs.Eighteen thousand three hundred and twenty eight nine only) on M/s.Murugan Mills on the unaccounted 10,942 mtrs of grey cotton fabrics and also confirm the same under Section 11A(1) of the Central Excise Act, 1944. I order appropriation of the duty demanded from the cash security of Rs. 1,65,000/- paid vide TR6 challan No.9/2003-04 dated 16-3-2004. 2.Since duty confirmed is being reduced, I also reduce the penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efit of 25% of revised penalty imposed by the adjudicating authority, I find that there is merit in the contention of the appellant as the adjudicating authority has appropriated the duty demand and redemption fine from the cash deposit of Rs. 1,65,000/- paid by the appellants vide TR.6 challan No.9/2003-04 dt. 16.3.2004. If revised duty amount of Rs. 18,628/- and the equivalent penalty under Section 11AC and Redemption Fine of Rs. 65,500/- is taken together which is less than the cash deposit already paid by the appellant before issue of show cause notice. Therefore, the appellant is eligible for the reduced penalty of 25% as per Section 11AC of the Central Excise Act. Accordingly, I uphold the order of the lower authority to the extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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