2007 (9) TMI 134 - AT - Central Excise

Shortage of finished products and excess of raw material recorded No evidence of clandestine removal Mens rea not proved so sec. 11AC cannot be invoked However penalty u/r 10 is imposable for wrong keeping of accounts Penalty reduced

Summary

The Appellate Tribunal CESTAT, Mumbai rejected the Revenue's appeal for enhancement of penalty, as the Commissioner (Appeals) had already reduced it to Rs. 10,000 citing lack of mens rea and invoking Rule 10 for contravention. The Tribunal found no infirmity in the Commissioner's decision.