2008 (6) TMI 517

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..... of a common order and therefore, these are being taken up together for disposal. 2. The relevant facts of the case, in brief, are that the assessee is engaged in the manufacture of Hot Rolled Products of Non-Alloy Steel falling under Chapter 72 of the Tariff Act, 1985. On 25-9-03, the Central Excise officers visited the assessee s factory and verified the stock. The officers ascertained shortage .....

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..... cation order in so far as the demand of duty of Rs. 17,760/- was set aside and penalty was reduced to Rs. 20,000/- under Section 11AC of the Act and Rs. 2,000/- under Rule 25 of the Central Excise Act. The assessee filed an appeal for setting aside the penalty. The Revenue filed appeal for enhancement of penalties. 3. After hearing both the sides and on perusal of the record, I find that the dem .....

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..... tage was detected during stock verification. The Hon ble High Court in the case of CCE, Chandigarh v. Nachiketa Paper Ltd. reported in 2008 (225) E.L.T. 194 (P H) = 2008 (86) RLT 225 (P H) has held that there was shortage of goods and no evidence of clandestine removal or sale of goods, not a case of fraud, wilful suppression or mis-statement of facts etc. and Section 11AC cannot be invoked. .....

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