9911796707
TMI Blog2009 (2) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... other evidence which can substantiate the finding by the original authority that the goods were cleared clandestinely has been relied upon. Under these circumstances, the decision of the Commissioner (Appeals) in setting aside the penalty imposed under Section 11AC is in order The original authority has imposed penalty on the authorized signatory holding that he was not only having knowledge/full control over the day-to-day affairs of the party and that he was aware of all the activities being carried out in the factory of clandestine removal of the goods found short, as well as he was actively involved in such fraudulent removals. This inference is not supported by any evidence. The only admission is the admission of shortage by Shri Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound on verification of the goods and duty on the shortage have been paid voluntarily before issue of show cause notice, set aside the penalties on both the appellants. 4. Learned DR submits that the shortage found is very huge, the reason for shortage was not explained by the authorized signatory, it should be presumed to have been clandestinely removed and the provisions of Section 11AC is applicable and, therefore, orders of the Commissioner (Appeals) in so far as vacating the penalties should be set aside. 5. Learned Advocate for the respondent supported the order of the Commissioner (Appeals). He also submitted that the imposition of composite penalty by the original authority under Section 11AC read with Rule 25 is not permissible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods were cleared clandestinely has been relied upon. Under these circumstances, the decision of the Commissioner (Appeals) in setting aside the penalty imposed under Section 11AC is in order. Further, the original authority has imposed penalty on the authorized signatory holding that he was not only having knowledge/full control over the day-to-day affairs of the party and that he was aware of all the activities being carried out in the factory of clandestine removal of the goods found short, as well as he was actively involved in such fraudulent removals. This inference is not supported by any evidence. The only admission is the admission of shortage by Shri Rajesh Agrawal. Therefore, there was no justification for imposition of penalty on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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