2010 (11) TMI 283 - AT - Central Excise

U/s 11AC read with Rule 25 of Central Excise Rules, 2002 and Rule 15 of Cenvat Credit Rules, 2004 - Shortage of inputs and finished goods and the duty/credit involved on the said goods was paid before issue of show cause notice - The Commissioner (Appeals) after noting that it was merely a case of unexplained shortage and that there was no evidence of any clandestine removal of the finished goods or disposal of inputs on which the credit had been taken, has set aside the penalty - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT, New Delhi upheld the decision of the Commissioner (Appeals) to set aside a penalty of Rs. 57,302 imposed under Section 11AC and rules of Central Excise and Cenvat Credit. The penalty was set aside due to unexplained shortage of goods without evidence of clandestine removal. The appeal against setting aside the penalty was rejected.