2017 (4) TMI 1212 - AT - Central Excise

Imposition of penalty - evasion of duty - unaccounted deal - Held that - Although, learned counsel pleads innocence of this appellant, it was not a reality. He cannot be presumed to be innocent when his qualification and the responsibility he discharged in respect of the position he held in management is examined - penalty upheld - decided against assessee.

Summary

Issues:
1. Appeal against levy of penalty under section 11AC of the Central Excise Act, 1944 by Revenue.
2. Appeal by M/s. V.M. Tradings against penalty under Rule 26 of Central Excise Rules, 2002.
3. Appeal by M/s. K. Subba Rao & Co. regarding unaccounted goods supply.
4. Appeal by M/s. Radha Textiles (P) Ltd. for penalty on dispatch of unaccounted goods.
5. Appeal by Shri P.N. Gopi against penalty imposition.

Issue 1 - Appeal against Penalty under Section 11AC:
The appeal by Revenue against M/s. Sree Uma Parameshwari Mills Ltd. involved a penalty issue under section 11AC of the Central Excise Act, 1944. The adjudication order confirmed a penalty of &8377; 78,37,548/- despite a payment of &8377; 50,00,000/- by the respondent before the show-cause notice. The tribunal noted that once proceedings were initiated under section 11AC, equal penalty was imposable against the duty liability. Therefore, the impugned order was modified to restore the penalty of &8377; 83,37,544/-, and the appeal of Revenue was allowed.

Issue 2 - Appeal by M/s. V.M. Tradings:
M/s. V.M. Tradings faced a penalty of &8377; 1,00,000/- under Rule 26 of Central Excise Rules, 2002, for supplying unaccounted cotton to M/s. Sree Uma Parameshwari Mills Ltd. The tribunal confirmed the penalty as the appellant failed to provide evidence to rebut the investigation's allegations, leading to a breach of the law.

Issue 3 - Appeal by M/s. K. Subba Rao & Co.:
The appeal by M/s. K. Subba Rao & Co. involved supplying unaccounted goods to M/s. Sree Uma Parameshwari Mills Ltd. without invoices, resulting in unaccounted finished goods being cleared without duty payment. The tribunal dismissed the appeal as there was no evidence to contradict the investigation's findings and the adjudication conclusion.

Issue 4 - Appeal by M/s. Radha Textiles (P) Ltd.:
M/s. Radha Textiles (P) Ltd. faced a penalty of &8377; 1,00,000/- for dispatching unaccounted goods, as evidenced by computer records and corroborated by M/s. Sree Uma Parameshwari Mills Ltd. The tribunal confirmed the penalty as the appellant failed to provide any defense against the investigation's findings.

Issue 5 - Appeal by Shri P.N. Gopi:
Shri P.N. Gopi, an employee, faced a penalty of &8377; 1,00,000/- for acting under the direction of the management of M/s. Sree Uma Parameshwari Mills Ltd. The tribunal confirmed the penalty, ruling that despite claims of innocence, his qualifications and responsibilities in the management position indicated otherwise.

In conclusion, the tribunal upheld penalties in various appeals related to unaccounted goods supply and dispatch, emphasizing the importance of evidence and compliance with excise regulations.