TMI Blog2018 (1) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is no material available on record that the Director of the assessee company was involved in such clandestine removal of the goods - penalty set aside. Appeal allowed in part. - Excise Appeal Nos. E/76775/17 (C.O. 76173/17) & E/76776/17, E/76712/17(C.O. 76172/17), E/76713/17 - Final Order No. FO/75010-75013/2018 - Dated:- 4-1-2018 - Shri P. K. Choudhary, Hon ble Judicial Member Sri Anjan Dasgupta, Advocate For Appellant Sri D. Halder, A. C. ( A. R. ) A. K. Biswas, Supdt. ( A. R. ) For Respondent ORDER Per Shri P. K. Choudhary Briefly stated the facts of the Appeal Nos.E/76775/2017 (C.O.-76173/2017) and E/76713/2017 are that M/s. C.P. Ispat Private Limited, the Assessee is engaged in the manufacture of Spong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Order to the extent that the penalty imposed on the assessee and its Director are set aside. Hence, the Revenue filed these appeals for imposition of penalty on the assessee and it s Director, Respondents herein. 2) Heard both sides and perused the appeals records. 3) I find that the Commissioner (Appeals) observed that there is no evidence of charge of clandestine removal of the goods against the assessee and it s Director and therefore penalties were set aside. It is observed that the credibility of the documentary evidence on which demand was raised would be disputed on various grounds. According to the Commissioner (Appeals) there is a dispute on the place of seizure of the documents as to whether it is seized from the Guest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classifiable under Chapter 72 of the First Schedule to the Central Excise Tariff Act, 1985. On 27.05.2014 the Officers of Director General of Central Excise Intelligence (DGCEI), Kolkata Zonal Unit searched the factory and office premises of the assessee and recovered various documents/records. It was found that the assessee cleared the M.S.Billet without payment of duty. Sri Shyam Bihari Makharia, Director of the assessee company after going through the seized documents accepted the clearance of goods without payment of duty and deposited a cheque of ₹ 20.00 lacs admitting the duty liability. A Show Cause Notice dated 26.05.2015 was issued proposing demand of duty alongwith interest and to impose penalty on the assessee and its Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f penalty under Section 11AC of the Central Excise Act on the appellant company is justified. I find that the Director of the assessee company had admitted the clearance of the goods and paid the duty. There is no material available on record that the Director of the assessee company was involved in such clandestine removal of the goods. Hence, the Commissioner (Appeals) has rightly set aside the penalty on the Direcotr of the assessee company. 7) In view of the above discussion, the appeals filed by the Revenue against 1) M/s. C.P. Ispat Private Limited and 3) M/s. Jaishree Steels Pvt. Ltd., the assessees, are allowed subject to the assessee s entitlement to avail the option to pay the penalty @ 25% of duty along with entire amount of d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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