2009 (6) TMI 832 - AT - Central Excise

Summary

The appellate tribunal CESTAT, New Delhi, under the citation 2009 (6) TMI 832, ruled on a case where Central Excise officers detected a shortage of finished goods involving central excise duty at a factory. The partner of the respondent firm admitted to the shortage and stated that the goods were sold in the open market without an invoice. The respondents deposited the duty and a penalty. The original authority confirmed the duty demand and imposed penalties, which were later set aside by the Commissioner (Appeals). The tribunal disagreed with thelluminate the Commissioner's decision, stating that the partner's admission of clandestine removal of the goods was sufficient for penalty under Section 11AC of the Central Excise Act, 1944. The tribunal referred to a case law to determine the penalty amount and reduced the penalties on the respondents. The tribunal set aside the Commissioner's order, restored the original authority's decision, and reduced the penalties on the respondents to Rs. 40,414 and Rs. 10,000 respectively. The appeals filed by the Revenue were disposed of accordingly.