TMI Blog2011 (1) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... t the order of the Commissioner (Appeals) No. 39/CE/LDH/2009, dated 6-3-2009. 2. Heard both sides. 3. When the officers visited the factory premises on 25-9-2003, they found stock of grey yarn of 2520 kgs. as against total quantity of 20,580 kgs. as per form IV register. Shri Ashok Kumar partner in his statement dated 25-9-2003 admitted the shortage of grey yarn and clarified that the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upheld the order of the original authority. 4. Learned advocate submits that the demand has been based on assumption and presumption and the issue of grey yarn for processing has not been taken into account for arriving at the shortage. The statements were taken from the partner under pressure and the same is contrary to the factual position and it should not be relied upon. In this regard, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om both sides and perused the records. It is noticed that the shortage of grey yarn was about 90%. The partner in his statement dated 25-9-2003 has clearly admitted clearance of yarn after dying without payment of duty to a customer on cash basis. He also pretended that he did not know any further details about the said customer. However, the duty involved stands paid on 1-10-2003. The show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 11AC, as they have paid the duty involved before issue of show cause notice, deserves to be accepted. 9. In the light of the above, the appeal is disposed of as follows :- (a) The appeal is rejected. (b) However, the appellant is given an option to pay penalty of ₹ 69,783.75p within 30 days from today. If the amount is not paid within 30 days, the penalty payable shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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