9911796707
TMI Blog2007 (5) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order]. These appeals are against the order of the Commissioner (Appeals) Nos. YPP/842-844/SRT/2003 dated 5-12-2003, by which the Commissioner (Appeals) rejected the appeals against the order of the original authority dated 25-2-2003. 2. Heard both sides. 3. The relevant facts, in brief, are as follows: (a) When the officers visited the appellant s factory premises on 5-10-97 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt manufacturers who were contacted claimed that they had supplied grey fabrics but claimed that they had not received back the processed fabrics. Another director of the company, Shri Naresh Kumar Agarwal, in his statement, given on 5-2-2002 reconfirmed the unaccounted production and clandestine removal. (e) The original authority adjudicated the show cause notice and confirmed the demand o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty imposed under Rule 173Q read with Section 11AC and such composite penalty cannot be sustained as there was no application of mind and segregation of penalty on the part of the original authority. Even if the penalty is sustained, he seeks for leniency. As regards the penalty imposed on the Directors, he submits that no separate penalty is warranted on the directors. Further, there is no c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds the interest, in the absence of identification of date of clandestine removal, it is not incorrect to hold that admitted clandestine removal has taken place on any day before 5-10-97. Therefore, the interest shall be calculated holding that clandestine removal has taken place on 4-10-97 as the directors have clearly admitted that the clandestine removal earlier to that date. The interest is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wingly concerned themselves in dealing with the goods liable for confiscation and therefore, penalty is warranted. However, taking the entire facts and circumstances of the case into account, penalty is reduced to Rs. 5,000/- on each of the two directors (Shri Narendra Kumar Agarwal and Shri Naresh Kumar Agarwal). 7. The appeals are partly allowed on the above terms. (Dictated and pronounced i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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