TMI Blog2018 (11) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... of clandestine manufacture and removal, the charges of suppression cannot be leveled against the appellant for imposition of penalty under Section 11AC of the Act - penalty set aside - appeal allowed - decided in favor of appellant. - APPEAL No. E/87206/2018 - A/87766/2018 - Dated:- 4-10-2018 - Shri S K Mohanty, Member (Judicial) Shri. Rajesh Ostwal, Advocate for Appellant Shri D.S. Chavan, Supdt. (A.R) for respondent ORDER 1. This appeal is directed against impugned order dated 27/02/2018 passed by the Commissioner (Appeals), Central Tax, Central Excise and Service Tax, Raigad. 2. Brief facts of the case are that the appellant is engaged in manufacture of trailers, classified under Tariff Item 87163100 of the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion order. However, he pleaded that the provisions of Section 11AC of the Act, cannot be invoked for imposition of equal amount of penalty. He submits that non-payment of duty within the stipulated time frame was not owing to the reason of fraud, collusion, suppression of facts, etc., with intent to defraud the Government revenue. To support his stand, the learned Advocate has referred to the statement dated 25/08/2008 recorded by the department from Shri Suresh Kumar Arora, Managing Director of the appellant company, wherein he had stated that the sale particulars were duly reflected in the commercial invoices issued by the appellant. The learned Advocate also relied on the decision of the Tribunal in the case of Primier Porcelain Pvt. Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of SSI scheme provided under the notification dated 01/03/2003. However, in respect of clearances made on 1st and 3rd March 2008, the appellant did not pay any Central Excise duty on removal of the final products out of its factory premises. Such payment was made on pointing out the mistake by the investigation wing of the Central Excise department. The statement recorded by the department under summon from Shri Suresh Kumar Arora is relevant for consideration of the present dispute. Thus, the said statement is extracted here-in-below: Q. Whether you agree with the statement given by Shri Sandesh Kadu, Manager (Accounts) of your factory? Ans. Yes. However, as regards to number of shortages, I am of the opinion that the same sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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