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TMI Blog2005 (6) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... he quantity of yarn found in excess of RG I stock, valued at Rs. 25,432/-, was seized. On the basis of investigative results, the department issued a show cause notice to the party demanding duty on the above quantity of 163 bags of cotton yarn and proposing to confiscate the excess stock of yarn and also proposing penalty under Section 11AC of the Central Excise Act, 1944 and Rule 173Q etc. of the Central Excise Rules, 1944. By the time this notice was issued, the party had already paid duty of Rs. 14,950/- on a part of the quantity of cotton yarn found clandestinely removed. The original authority confirmed demand of duty of Rs. 41,239/- on the cotton yarn clandestinely removed during 25-11-1997 to 6-1-1998 and appropriated the above paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound the time of filing of this appeal, though the penalty imposed by the original authority was paid at the lower appellate stage. 3. After examining the records and hearing both sides, I find that, in respect of 163 bags and 5724 kgs. of 40's cone yarn, there is no dispute of duty liability and the duty on these goods has already been paid by the appellants. Clandestine removal of these goods, thus, is an admitted fact. The only plea raised by the appellants is that they were not aware of the Central Excise law and procedure during the relevant period. The appellants started manufacturing activity only in 1997. By the time the Central Excise Officers visited the factory, the appellants had not acquired adequate awareness of the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is on the higher side and the same is reduced to Rs. 4,000/-, Appeal No. E/628/2004 is allowed only to this extent. 4. Upon similar considerations, the fine of Rs. 9,000/- imposed on the assessee in lieu of confiscation of cotton yarn valued at Rs. 63,000/- is also found to be on the higher side and the same is reduced to Rs. 6,000/-. Coming to the penalty of Rs. 28,422/-, I find that this is equal to the duty demanded by the department and paid by the assessee on 5724 kgs. of cotton yarn. Though the orders of the lower authorities mentioned various provisions of Central Excise Rules along with Section 11AC in the context of imposing this penalty, going by the quantum of penalty imposed, I think that the authorities were invoking Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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