9911796707
TMI Blog2000 (11) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... it manufactures PF and UF resins falling under Chapter Heading 39 of Central Excise Tariff Act, 1985, (Urea, Phenol) under the Central Excise Licence, availing the benefit under SSI Notification No. 1/93, of 1-3-93 and avails Modvat credit. Acting on intelligence, the officers of Preventive unit of Ambernath, intercepted a vehicle with Registration No. MH05-3542 at 7.30 p.m. on 22-2-94 near Octroi Naka, bordering Ulhasnagar and Ambernath (West). On demand by officers, the driver produced Delivery Challan No. 768/93-94 and a bill of even No. dated 22-4-94 in respect of the goods within the vehicle issued by appellant. They disclosed that UF resins of 3080 kgs. in 14 drums were consigned and transported to M/s. Nirmal Enterprises. Delivery ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Officers conducted physical stock challenge and found shortage of 220 kgs. of PF Resins. K.R. Rao agreed to pay duty there on. 2. The gist of the Investigation is that appellant had clandestinely removed 3080 kgs. of UF Resins on 22-2-94 valued Rs. 24,640/- and 18,700 kgs. of UF Resins valued at Rs. 1,37,346.00 during June 93 to Jan. 94, with intent to evade payment of Excise duty on such removals, and therefore contravened Rule 9(1) read with Rule 173F and Rule 173G(1), Rule 52A read with Rule 173G(1), Rule 53 read with Rule 226 and Rule 173G(4) of Central Excise Rules. On 11-8-94 Show cause notice was issued to appellant alleging above contraventions, calling upon to show cause as to why (a) Central Excise duty of Rs. 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f duty of Rs. 33,541.00 under Rule 9(2) read with S. 11A of Central Excise Act, which was already paid by appellant, appropriated and adjusted the same to the duty confirmed. Penalty of Rs. 25,000/- was imposed on appellant under Rule 173Q of Central Excise Rules. Seized goods and Vehicle No. MH05-3542 are liable to confiscation under Rule 173Q and S. 115(2) of Customs Act as made applicable to Central Excise case. They were released provisionally on execution of bond and furnishing of security. Appellant was asked to produce before Adjudicating Authority in terms of the bond. On the failure of appellant to produce the same, total security of Rs. 30,000/- was appropriated. Hence the appeal. 3. The learned Counsel for appellant Dr. D.M. Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase law is applied to the case on hand and discussed below. 5. The case of the appellant, as per his statement under Section 14 of Central Excise Act, reply to show cause notice, and appeal memorandum, and arguments before the Tribunal is being technocrats, they are not much of know of Central Excise procedure and a small SSI unit. The Director had instructed the Manager that on 22-2-94 at about 5.00 p.m., while going on urgent work that as soon as vehicle returns from Bhivandi, to the factory, it should be loaded with 14 barrels of UF Resin; and after preparing all the relevant documents including GP-I, the vehicle should be allowed to go with all the despatch documents, from the factory, and accordingly concerned person prepared Delive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal hearing notice on 28-7-95 to appear on 11-8-95. 6. From the above it is clear that appellant was not asked to produce the seized goods and vehicle on a particular date. In view of show cause notice demand and reply to it by appellant, it was necessary to fix date for production. In the absence of it, failure of production cannot be fastened on the appellant. Show cause notice mention is vague and general. It was not specific. In personal hearing also, nothing was referred in this regard as per impugned order. Looking to the facts and circumstances of this case available on record, penalty imposed is excessive. Appellant has debitted duty amount and paid duty penalty amount. He has admitted lapses. There are no sufficient grounds to s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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