2004 (2) TMI 445

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..... don, SDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The first appellant is a manufacturer of plastic film sheets and plates. In the impugned order a duty demand of about Rs. 12 lakhs has been confirmed on it mainly on the ground that it had clandestinely produced and removed certain goods without payment of Central Excise duty. In addition, the order has confirmed the demand .....

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..... ;The explanation of the appellant to the above discrepancy is that the goods removed were actually only waste but other copies of invoices (for such waste) were used for reselling goods. (Which the appellant had purchased from other parties) and for that reason, related to other goods. It is being stated that on account of shortage of production in appellant's unit, the appellant had to buy goods .....

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..... in the nature of purchase documents, payment particulars etc. Bereft of these supports, the explanation cannot stand. In the absence of acceptable evidence substantiating the purported transactions, filing of affidavits by purported sellers is only an invitation to lie under oath for inducements. Fellow citizens should be spared this. 3.1 There is also evidence going against the appellant's .....

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..... ntion that this demand cannot Separately survive in view of the demand on clandestinely removed final products. As already stated, shortage of inputs suggests its utilization in clandestine production. Therefore, this demand cannot survive separately from the duty demand on account of clandestine production and removal. Therefore, relief is required on this score. After deducting this duty amount .....

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..... ny. As already pointed out, he has been rightly indicted for his direct involvement in fraudulent activities (creating false records). The amount of penalty also is small. No interference is called for. 5. In the view we have taken above, the duty demand on the first appellant is reduced to Rs. 10,88,676/-. Penalty on it is also reduced to Rs. 5 lakhs. The appellant manufacturer shall, in ad .....

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