TMI Blog2007 (2) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... material – Penalty is reduced - Appeal No.E/6008/2004-SM - 531/2007-SM(BR)(PB), - Dated:- 5-2-2007 - Shri P.K. Das, Member (J) [Order per] - The relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of food products falling under sub-heading 1803.00 of the First Schedule to the Central Excise Tariff Act, 1985. On 18-12-1997, the central excise offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loor. He submits that Shri Dhiraj Mishra in his statement before the central excise officers categorically stated that the goods were lying in the production floor. But, due to oversight the said quantity was entered in the RG-1 register. He submits that the allegation of clandestine removal is without any basis and, therefore, the demand of duty and imposition of penalty are unjustified. He submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llants admitted the shortage of good which were removed clandestinely and, therefore, the demand of duty and imposition of penalty are proper. 4. After hearing both the sides and on perusal of the records it transpires from reply to Show cause notice that the appellants requested the visiting officers to verify the stock lying in the finishing floor of the factory. It was contended by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llants, in his statement dated 18-12-1997, stated that the entry in RG-1 was made on the basis of the production slip and the goods were not taken into store room due to oversight. It is pertinent to note that the representative of the appellants did not produce the goods for verification to the central excise officers. As such, the contention of the appellants at this stage is without any substan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, therefore, the imposition of penalty under Rule 173Q of the erstwhile Central Excise Rules is justified. But after considering the facts and circumstances of the case, the imposition of penalty under Rule 173Q is reduced to Rs.20,000/- and the impugned order is otherwise upheld. 6. The appeal is disposed of in the above terms. (Dictated and pronounced in open court). - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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