TMI Blog2015 (4) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... and is overall in-charge of the company including production, clearance and finance including direct and indirect taxation. He has also admitted removal of 882.110 M.T. of Sponge Iron without abiding by the Central Excise formalities and also admitted that even the raw material for manufacture of the unaccounted finished goods cleared from their factory without issuing any Central Excise invoices, was also not entered in their books of Account. Thus, there is no doubt that the applicants were knowingly engaged in unaccounted manufacture and clandestine removal of finished goods without payment of Central Excise duties in a planned manner. Therefore, they do not deserve full immunity from penalty. The Bench imposes penalty of ₹ 3,75,000/- (Rupees three lakhs and seventy-five thousand only) on the applicant M/s. Maa Chhinnamastika Cement & Ispat Pvt. Ltd. and ₹ 1,85,000/- (Rupees one lakh and eighty-five thousand only) on the co-applicant Shri Ram Chandra Rungta and grants immunity from penalty in excess of these amounts. The amounts of penalty should be paid within 30 days from the date of receipt of this order. Prosecution - Subject to the payment of the aforesai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a result of the joint stock verification conducted in the presence of the DGCEI officials and co-applicant, shortage of 882.110 MT of Sponge Iron was detected which was admitted to have been clandestinely cleared without issuing any Central Excise invoices and without payment of duty amounting to ₹ 18,53,489/- (including duty of ₹ 17,99,504/-, E. Cess of ₹ 35,990/- and Secondary Higher Education Cess of ₹ 17,995/-) by the co-applicant in his statement dated 16-4-2013. 3. The co-applicant, in his statement dated 16-4-2013 inter alia accepted the above shortage and admitted that the shortage had occurred due to removal of the finished goods without issuing Central Excise invoices and without payment of Central Excise duty and without recording such removals in their statutory Daily Stock Account (DSA) register. He also admitted that the raw material for manufacturing the finished goods was also not entered in their books of account. He accepted the duty liability on 882.110 M.T. of Sponge Iron and deposited ₹ 20,00,000/- vide Challan No. 00506, dated 25-3-2013 of State Bank of India towards their duty liability. 4. On completion of the invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cants, the cases were allowed to be proceeded with. 7. Report under Section 32F(3) was called for on 14-11-2014 from the Commissioner of Central Excise Service Tax, Ranchi Commissionerate, Central Revenue Building, 5A, Main Road, Ranchi - 834001 and DGCEI. 8.1 The ADG, DGCEI in his report dated 6-1-2015 reiterated the contents of the SCN and also stated that the case was booked on 14-3-2013 and the assessee had paid their entire duty liability on 25-3-2013. Therefore, the interest under Section 11AA of the Act does not appear to be chargeable and prayed that in view of their wilful act of omission with the mala fide intention to evade payment of Central Excise duty, the prayer for immunity from penalty and prosecution may not be granted. 8.2 In his report dated 15/16-1-2015 under Section 32F(3) of the Act the Additional Commissioner of Central Excise Service Tax, Ranchi - I, vide letter F. No. V(72) 83/Maa Chinnamastika/Adjn/RAN/2014, dated 15-1-2015 inter alia submitted that the applicant has admitted their entire duty liability and there is no interest liability in this case. The payment of ₹ 20,00,000/- made by the applicant was also confirmed by the Range Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted by the co-applicant, Shri Ram Chandra Rungta, in his statement dated 16-4-2013. The applicants have admitted that they were engaged in unaccounted manufacture and clandestine removal of finished goods without payment of Central Excise duties in a planned manner. The co-applicant, Shri Ram Chandra Rungta, in his statement dated 16-4-2013 has also admitted that he is one of the Directors of the company and is overall in-charge of the company including production, clearance and finance including direct and indirect taxation. He has also admitted removal of 882.110 M.T. of Sponge Iron without abiding by the Central Excise formalities and also admitted that even the raw material for manufacture of the unaccounted finished goods cleared from their factory without issuing any Central Excise invoices, was also not entered in their books of Account. Thus, there is no doubt that the applicants were knowingly engaged in unaccounted manufacture and clandestine removal of finished goods without payment of Central Excise duties in a planned manner. Therefore, they do not deserve full immunity from penalty. 11. Regarding the interest, Bench finds that in view of the submissions made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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