2010 (7) TMI 999 - AT - Central Excise

Summary

Issues involved: Appeal by Department against Commissioner (Appeals) order regarding shortage of glass bowls, duty payment, penalty imposition, and liability of authorised signatory.

Shortage of goods and duty payment: Officers found shortage of 50,200 dozens of glass bowls valued at Rs. 12,55,000 during factory visit. Duty amount of Rs. 2,04,816 was involved. Authorized signatory admitted removal of goods without invoices or duty payment, which was later paid. Original authority confirmed demand and imposed penalties, which were set aside by Commissioner (Appeals) due to lack of evidence for clandestine removal and duty payment before show cause notice.

Arguments and submissions: Revenue reiterated grounds of appeal, while respondents' advocate supported Commissioner (Appeals) order. Advocate argued that signatory was not involved in removal, or alternatively, requested concessional penalty citing relevant case law.

Decision and reasoning: Tribunal noted substantial shortage and signatory's admission of removal without payment. Absence of retraction and subsequent duty payment indicated signatory's involvement. Tribunal disagreed with Commissioner (Appeals) on corroboration requirement and penalty waiver due to early duty payment. Signatory lacked evidence of intent to evade duty.

Disposition of appeals: Penalty on firm reinstated, but given option to pay reduced amount within 30 days. Penalty on signatory upheld. Cross-objections also disposed of accordingly.