2006 (9) TMI 450

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..... removed clandestinely imported raw material from the bonded warehouse without payment of duty and the duty evaded amounting to Rs. 68,109/- was paid on 30-10-2001. (b)     Other appellant M/s. Iqbal Synthetics Pvt. Ltd. was found to have clandestinely removed domestically procured raw materials and finished excisable goods without payment of duty and the duty evaded amounting to Rs. 1,96,225/- was paid on 30-10-2001. (c)     Shri Azam Satar Motiwala, Director of M/s. Iqbal Synthetics Pvt. Ltd. is the third appellant. (d)    A common show cause notice was issued on 28-3-03 against the three appellants herein demanding duty as mentioned above and proposing appropriation of amount alre .....

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..... osable. He relied upon the following judgments : (1)     Jindal Vijaynagar Steels Ltd. v. Commissioner of Customs, Mangalore - 2004 (177) E.L.T. 937 (Tri.-Bang.) = 2004-TIOL-733-CESTAT-BANG (2)     Commissioner of Central Excise, Delhi III, Gurgaon v. Machino Montell (I) Ltd. - 2004 (168) E.L.T. 466 (Tri.-LB) = 2004-TIOL-423-CESTAT-DEL-LB (3)     Commissioner of Central Excise, Mangalore v. Shree Krishna Pipe Industries - 2004 (165) E.L.T. 508 (Kar.) = (2004-T1OL-09-HC-KAR-CX) 5. Learned SDR submitted the following : (a)     He referred to the explanation 1 to sub-sec. 11A(2B) of the Central Excise Act, 1944 according to which the provision relating to .....

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..... to pay only duty after he was caught red handed and absolved of interest liabilities and penal action. This will lead to a situation where an evader even when he is caught, he has nothing to loose. Evasion will become totally risk free and such a situation is not a healthy but a dangerous situation. In view of the above, the penalties under Sec. 11AC is imposable on M/s. Iqbal Synthetics Pvt. Ltd. and penalty under Sec. 114A is imposable on M/s. Chistia Textiles. 9. As regards to the judgments relied upon by the learned Advocate for the appellants they are distinguishable from the facts of the present case. In the case of CCE v. Shree Krishna Pipe Industries the dispute involved was eligibility to exemption available to a small scale .....

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