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2016 (9) TMI 940 - CESTAT NEW DELHI

2016 (9) TMI 940 - CESTAT NEW DELHI - 2016 (341) E.L.T. 425 (Tri. - Del.) - Imposition of penalty - Section 11AC of Central Excise Act, 1944 - raw materials and finished goods - found short in the appellant premises - clandestine removal of goods - Held that:- it is a fact that Revenue is solely relying upon the shortages. There is virtually no other evidence to reflect upon the manufacture of appellant s final product, their transportation, recognition of the buyers and receipt of sales proceed .....

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e view that the findings arrived at by the lower authorities that shortages by itself cannot held to be clandestine removal of goods is appropriate decision, thus not requiring any interference with. - Confiscation - Rule 15 of the Cenvat Credit Rules, 2004 and Rule 25 of the Central Excise Rules, 2002 - raw materials and scrap - found in excess quantity - Held that:- it is found that it stand recorded by the authorities below that there was no evidence to show that such non-recording in the .....

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for the Appellants None for the Respondent ORDER Per Ms. Archana Wadhwa Being aggrieved with the order passed by Commissioner (Appeals) vide which he has rejected the Revenue appeal, inasmuch as the impugned order of the Additional Commissioner was also in favour of the respondent, Revenue has filed the present appeal. 2. I have heard Shri Dharam Singh, learned DR appearing for the Revenue. Nobody appeared for the respondent. 3. As per facts on record, the respondents are engaged in the manufact .....

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d against the respondents by way of issuance of show cause notice dated 26.09.06 proposing to confirm the demand of duty of ₹ 37,36,296/- leviable on 43.220MT of raw material and 845.690 MT of finished goods found short in the appellants premises, Inasmuch as assessee had already deposited an amount of ₹ 37,36,296/- at the time of visit of officers, the notice also proposed to appropriate the same. Further, the quantum of 19 MT of wire rods in coil raw materials and 0.360 MT of scrap .....

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nce of clandestine removal by the assessee and as such, it cannot be held to be a case of malafide intention so as to impose penalty upon the assessee under section 11AC of the Central Excise Act. He however, confirmed the demand of duty inasmuch as there were shortages in the factory and the appellant had already deposited the duty amount. He ordered for appropriation of the same. However, he imposed penalty of Rs. One lakh under Rule 25 of the Central Excise Rules, 2002 for improper maintenanc .....

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alent to duty amount should have been imposed and the excess found goods should have been confiscated. By a detailed order Commissioner (Appeals) rejected the Revenue s appeal as he did not find any justifiable ground to interfere in the order of original adjudicating authority. 7. Hence the present appeal by Revenue. 8. After having heard the learned DR appearing for the Revenue, and after having gone through the impugned orders as also the memo of appeal, I find that the Revenue s stand that p .....

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