9911796707
TMI Blog2010 (11) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, show cause notice has been issued of course, invoking the provisions of Section 11AC as well - Do not find any justification whatsoever to link the shortage of finished goods with the shortage of inputs - Shortage of inputs can explain excess of finished goods. Shortage of inputs cannot explain shortage of finished goods - Thus it is a clear case of non-accounted shortage and penalty is warranted under Rule 25(1)(b) - However, no evidence has been relied upon by the department justifying invokation of provisions of Section 11AC - Decided in favour of assessee. - E/1087 & E/861/2009-SM(BR) - 1365-1366/2010-SM(BR)(PB) - Dated:- 24-11-2010 - Shri M. Veeraiyan, J. REPRESENTED BY : None, for the Assessee. Shri K.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,318/-. (c) Shri Arvinder Pal Singh, Director of the company claimed that the shortage detected on 3-11-01 was attributable to what was earlier detected by the officers on 10-5-01. (d) As the investigating officers felt that this explanation of Shri Arvinder Pal Singh is not tenable , a show cause notice was issued proposing demand of duty of Rs. 2,49,847/- along with interest and for imposition of penalty under Rule 25 of the Central Excise Rules, read with Section 11AC of the Central Excise Act. The party deposited a sum of Rs. 1,50,000/- on 4-11-01 and further sum of Rs. One lakh on 5-6-03. (e) The original authority vide order dated 28-3-04 confirmed the demand of duty as proposed in the show cause notice and imposed e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the party is a habitual offender and deserves no leniency. He submits that the shortage of inputs on 10-5-01 has no bearing on the shortage of finished goods noticed on 3-11-01. 6. I have carefully considered the submissions from both sides. When the officers visited, on 10-5-01, the premises of the factory, a huge shortage of 40,187 Kgs of granules which are inputs has been noticed. The shortage was not explained and the duty involved stands paid. Apparently there are separate proceedings relating to shortage of inputs noticed on 10-5-01. On 3-11-01, when the officers visited the factory again, this time, for a change, they noticed shortage of finished goods. The director of the Company made a feeble attempt to link the goods foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd interest ordered by the original authority by the Commissioner (Appeals) is justified. The challenge of the party seeking setting aside the demand of duty and interest does not deserves to be accepted. Having held that it is not a case for invoking the provisions of Section 11AC, sustaining the imposition of penalty up to Rs. 60,000/- as ordered by the Commissioner (Appeals) is justified in the facts and circumstances of the case. The challenge of the party for setting aside the penalty does not deserve acceptance. At the same time, the prayer of the department seeking enhancement of penalty also does not deserve to be accepted. 7. In view of the above, the impugned order of the Commissioner (Appeals) is upheld. Appeal of the party as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
