2009 (5) TMI 752 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, NEW DELHI, 2009 (5) TMI 752, heard the case of an appellant engaged in manufacturing Pipes and Tubes under Chapter 73 of the Central Excise Tariff Act, 1984. Central Excise Officers found a shortage of goods during a factory visit, leading to a duty demand of Rs. 52,712. The appellants had also cleared branded goods at a concessional rate under SSI exemption Notification No. 9/2001. They paid the total duty of Rs. 2,18,274 and were penalized Rs. 54,569. The Commissioner increased the penalty to match the duty amount, prompting the appellants' appeal. The advocate argued that the shortage was voluntarily paid, and the branded goods clearance was due to a lack of knowledge. The Department argued the duty was paid only after detection, and the penalty under Section 11 AC was warranted. The Tribunal upheld the duty demand but set aside the penalty, ruling that no evidence of clandestine removal existed. The appeal was disposed of on 28-5-2009.