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TMI Blog2010 (1) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... er no clandestine removal of inputs, then there is no question of imposition of any penalty specially, when respondent have already paid the duty even prior to the issuance of show cause notice. - 101 of 2009 - - - Dated:- 28-1-2010 - Ashutosh Mohunta and Mehinder Singh Sullar, JJ. Shri Hemen Aggarwal, Advocate, for the Appellant. Shri Naveen Malik, Advocate, for the Respondent. [Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely, cyclohaxamine and PVC compound. Accordingly, a show cause notice was served upon the respondents to which they replied. The Assistant Commissioner, Central Excise vide his order dated 24-3-2004, confirmed the demand of Central Excise amounting to Rs. 2,39,713/- and also imposed penalty equivalent to the amount of duty. The respondents had duly paid the duty even before issuance of show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shortfall in the inputs of cyclohaxamine and PVC compound. The respondents have explained the shortage by submitting that as far as cyclohaxamine is concerned, the same has evaporation tendency and due to evaporation process, a reasonable loss of 5.93% of this material occurred. He further submits that as far as PVC compound is concerned, there was negligible shortfall in the inputs of 0.18% only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ana v. FAS Kusum Ispat (P) Ltd., reported as 2009 (240) E.L.T. 13 (P H) has held that in a case where there is a shortage of inputs, however, there is no mens rea or intention to evade duty and further no clandestine removal of inputs, then there is no question of imposition of any penalty. In the present case, we find that one of the inputs being used by the respondents, i.e. cyclohaxamine was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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