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TMI Blog1997 (4) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... 85 to 12-10-1985, the assessees had cleared clandestinely without payment of duty man-made fabrics measuring 15,56,376 L. Mtrs. on which duty evaded worked out to Rs. 13,73,971.29 and also cotton fabrics measuring 13,27,995 L. Mtrs. on which duty evaded amounted to Rs. 2,34,763.21. Pursuant to a show cause notice, the Collector adjudicated the case, confirmed the demand for duty not paid, ordered confiscation of the goods seized and also imposed penalty of Rs. 5 lakhs on the assessees. The present appeal is directed against this order. 2. Shri Udey Joshi, Advocate argued the case for the appellants and Shri M. Hajamohideen, JDR represented the Revenue. 3. Shri Joshi stated that out of 17 lots under which goods were clandestinely removed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h co-relation was not shown by the assessees. In the absence of the specific documents to show that goods clandestinely cleared under these 7 lots consisted of cotton fabrics received under claimed sorts or lots, no relief can be considered. We upheld the Collector s finding that the goods were man-made fabrics and hold that calculation of duty not paid was correct. 4. Learned Advocate has claimed that 1% discount was given to all buyers uniformly and the deduction on this account was warranted. Shri Mohideen stated that even in the price list filed by the assessees, no discount has been claimed. For discount to be admitted. The factum of its availability has to be known to the buyers as well as to the department. The Collector in para 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal has remitted penalty. We are not impressed with this argument. The basic duty of excise evaded comes to Rs. 1,24,440/-. In terms of Rule 173Q of the Central Excise Rules, 1944, the maximum penalty leviable is three times the value of the offending goods which in the present case is much higher than the penalty imposed. We, however, take note of the second submission made by the learned Advocate that the appellants had paid the entire duty short levied even before the adjudication, of which a part was paid even before the issue of show cause notice. On this ground alone, we find some justification in awarding marginal reduction in the quantum of penalty. 7. We, accordingly, reduce the quantum of penalty from Rs. 5 lakhs to Rs. 4 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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