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M/s Jenith Laminators (P) Ltd., Shri Tarun Kumar Dharewa Versus CCE, Delhi

2016 (9) TMI 735 - CESTAT NEW DELHI

Levy of penalty - no challenge to the confirmation of demand of duty or confiscation of the seized goods - unaccounted stock - The godown search revealed presence of the lamination goods, including inner pouch and outer packing with the brand name of the Kuber Group of Companies - The godown keeper the could not produce any documents to show the stock of the goods in the godown - Held that:- as per proviso to Section 11AC if an assessee pays 25% of the penalty within a period of 30 days from the .....

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does not require imposition of penalty to the extent of 100%. Further as a lot of time gap has passed between the date of passing of the order till date and the appellant had not deposited any penalty amount till date, I, by taking the interest factors into account reduce the penalty imposed upon M/s Jenith Laminators Pvt. Ltd. to 50% of the penalty imposed upon them. - As regards penalty imposed on the Directors, it is seen that Director in his statement has admitted removal of the goods f .....

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hat the appellants are engaged in the manufacture of laminations falling under Chapter 39 of the Central Excise Tariff Act, 1985. Their factory was put to search on 21/5/04 alongwith the search of the godown. The godown search revealed presence of the lamination goods, including inner pouch and outer packing with the brand name of the Kuber Group of Companies, for whom they were manufactured for totally valued at ₹ 23,42,795/-. 2. The godown keeper the could not produce any documents to sh .....

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f penalties. The notice resulted in passing of an order by the original Adjudicating Authority confirming the demand of duty of ₹ 3,74,847/- and confiscating the seized goods with an option to redeem on payment of redemption fine of ₹ 6 lakhs. In as mush as the appellant had deposited the duty amount, the same was appropriated. Further penalty of identical amount was imposed under Rule 25 of the Central Excise Rules and in addition penalty of ₹ 1 lakh was imposed on Shri Tarun .....

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is to imposition of penalty of ₹ 3,74,847/- imposed upon the manufacturing unit in terms of Rule 25 of the Central Excise Rules and of ₹ 1 lakh imposed upon the Director under Rule 26 of the Rules. The contention of the learned Advocate is that in case of clandestine activities the appropriate section for imposition of penalties is Section 11AC. Though the said Section 11AC also provide for imposition of penalty to the extent of 100% of duty amount but the proviso to the said Section .....

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e prayer is to reduce the penalty to 25%. Similarly, in the case of the Director, the prayer stands made to reduce the penalty in as much as he was not the one looking after day-to-day function of the company. 6. After hearing the learned DR, who has submitted that Rule 25 also provide for imposition of penalties in such a situation and, as such, the appellant s grievance that the penalty should have been imposed under Section 11AC cannot be appreciated, I find that Rule 25 under which the penal .....

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