9911796707
TMI Blog2010 (6) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1944. 2. The relevant facts that arise for consideration are. The appellants are the manufacturers of Cigarettes falling under Chapter Heading No. 24.03 of the Schedule to the Central Excise Tariff Act, 1985. The Officers of Central Excise during the course of search conducted in the factory on 10-10-1998 have found 220 CFCs of various brands of Cigarettes secreted in a room other than the bonded storeroom and seized the same. On a request made by the respondents, the Additional Commissioner ordered for provisional release of the same on execution of B-11 bond with Bank Guarantee. The appellants, after taking provisional release of the goods, have accounted for the cigarettes in their RG-1 register and cleared the same on paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y on the appellants since he held that there was a scope for removal of the goods without payment of duty but for the detection of the same by the department. The Commissioner (Appeal) vide Order-in-Appeal No. 11/2004 (H-II) (D)C.E., dt. 20-10-2004 remanded the case to the adjudicating authority for de novo adjudication. The Additional Commissioner passed an order in de novo adjudication order as narrated above. 3. Aggrieved by such an order of the Additional Commissioner, the appellants preferred an appeal before the learned Commissioner (Appeals) on various grounds. The learned Commissioner (Appeals), after considering the submissions made by the appellant before him, upheld the order of the Additional Commissioner for imposition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... toreroom is itself an indicator of the intention of the assessee. He would submit that the Adjudicating Authority as well as the Commissioner (Appeals) has clearly brought out the intention of the assessee in imposition of penalty under Section 11AC. 6.We have carefully considered the submissions made at length by both sides and perused the records. 7. The issue involved in this case is regarding the imposition of penalty under the provisions of Section 11AC of the Central Excise Act, 1944 on the appellants. 8. Since the appeal of the assessee is only towards the imposition of penalty, the Adjudicating Authority 's order as well as the Appellate Authority 's order, upholding the confirmation of the demand and appropriation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y only when the Central Excise Duty has not been paid or levied or has been short levied or short paid or erroneously refunded by reasons of fraud, collusion or willful misstatement or suppression of facts, or contravention of any of the provisions of this Act or of the Rules made thereunder with intent to evade payment of duty. It can be seen from the records that in this case before us, none of these ingredients could have arisen, as the goods have never left the factory premises of the appellant and the assessee was under physical control. It is also on record that the appropriate duty on the goods, which were unaccounted, were discharged by the assessee when they sought provisional clearance of the goods. In view 'of these facts, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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