2007 (7) TMI 451 - AT - Central Excise

Summary

Issues involved: Duty demand, interest demand, penalty imposition on appellant-firm, penalty imposition on authorized signatory.

Duty Demand: The officers found a shortage of inputs at the appellant's factory, leading to a duty amount involving Cenvat credit being paid on the same day. The shortage was acknowledged by the authorized signatory and the proprietor. The Original Authority confirmed the duty along with interest and penalties. The Commissioner (Appeals) upheld the duty demand and penalties on the appellant-firm but set aside the penalty on the proprietor. The Tribunal found that the duty involved had been paid promptly upon detection of the shortage, and no evidence of clandestine removal was presented. Consequently, the Tribunal upheld the duty demand but set aside the penalties imposed on the appellant-firm and authorized signatory.

Interest Demand: The Tribunal noted that the duty on the shortage of inputs had been paid immediately upon discovery, and no evidence suggested clandestine removal. As such, the Tribunal found no justification for confirming the interest demand and set it aside.

Penalty Imposition on Appellant-firm and Authorized Signatory: The Tribunal determined that since there was no evidence of clandestine removal of inputs and the duty had been paid promptly, the imposition of penalties under section 11AC was unwarranted. Therefore, the penalties imposed on the appellant-firm and authorized signatory were set aside.

Conclusion: The Tribunal upheld the duty demand, set aside the interest demand, and revoked the penalties imposed on the appellant-firm and authorized signatory due to the prompt payment of duty and lack of evidence supporting clandestine removal. The appeals were disposed of accordingly.