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2015 (10) TMI 2196 - CESTAT AHMEDABAD

2015 (10) TMI 2196 - CESTAT AHMEDABAD - TMI - Clandestine removal of inputs and finished goods - Shortage of goods founds - Held that:- Shortage of MS scrap is correct as they have been sold by the appellant the scrap in the local market to various individual traders without preparing any bills. With respect to shortage of SS Slabs, it was stated by Shri Mohammed Kaizer, Director, that they have cleared the goods without preparing any bills. On a specific question asked by the investigating offi .....

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lant was in the practice of receiving raw materials unscrupulously and using the same in the manufacture of finished goods removed of clandestinely. Inspite of some MS Scrap in process and lying near the furnace, in his statement the Director of the main appellant did not claim that raw materials in stock was incorrectly taken by the Dept. Officers. The statements taken by the investigators are not retracted. Therefore, taking a stand during appeal proceeding that stock taking of the raw-materia .....

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receipt of such communication from the Adjudicating Authority. So far as imposition of penalties upon the other appellants is concerned, it is observed that they were involved in the clandestine removal of raw-materials and the finished goods. Therefore, the penalty imposed by the Adjudicating Authority upon the appellants is justified and has been correctly upheld by the first Appellate Authority - Decided partly in favour of assessee. - Appeal No. : E/1892-1894/2010 - ORDER No. A/10890-10892/ .....

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h interest and also imposed equivalent penalty under Rule 25 of the Central Excise Rules 2002, read with Section 11AC of the Central Excise Act 1944 giving option of 25% reduced penalty also as per provisions of Section 11AC, Central Excise Act 1944. Penalties of ₹ 5 lac each were imposed upon Sajidmiyan Nazir, Director of the main appellant and Shri Anwar Ul Islam, Authorised Signatory of the main appellant, which were upheld up the first Appellate Authority and appeals had been filed by .....

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ses Learned Advocate made the Bench go though Panchnama dtd 6.8.2008 wherein on Page 4 of this Panchnama it is mentioned that some quantity of MS Scrap was kept in the factory near the furnace. It is the case of main appellant that there were no shortages of scrap. Similarly for shortage of 252.18 MT of SS Flats it is argued by the Learned Advocate that no investigation has been made by the investigating officers from where wrongly main appellant procured excess raw materials for manufacturing o .....

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i.Del.)] . 3. Shri L Patra, Authorised Representative, appearing on behalf of Revenue argued that shortage of raw materials during the visit by the officers of Central Excise is the indication that appellant in indulging in the manufacture of excisable goods and subsequently clandestine clearance of such goods manufactured. That the shortage of finished goods in the stock establishes that the same have been cleared without payment of proper duty. He relies upon the case law of Singh Scrap Proces .....

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Representative also relied upon the following case laws to argue that when a comparative statement on clandestine clearance is given by the appellant the other details like procurement of raw materials and consumption of electricity etc., are not required to be investigated and proved in each and every case. i) Surie Engg Works vs CCE, New Delhi 2004(167)ELT.195(Tri.Del.) ii) Motorol Technolog9es Ltd vs CCE, Vadodara 2009(245)ELT.278.(Tri.Ahmd) iii) Syed Maohammad Vs CC 1993(65)ELT.117 (Tri.) i .....

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oted during the visits by the Central Excise Officers. Shri Mohammed Kaizar, Director of the main appellant in his statement dated 6.8.2008 admitted that there was a shortage of stock of MS Scrap on which Cenvat Credit was taken. It was further admitted that shortage of MS scrap is correct as they have been sold by the appellant the scrap in the local market to various individual traders without preparing any bills. With respect to shortage of SS Slabs, it was stated by Shri Mohammed Kaizer, Dir .....

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