9911796707
TMI Blog2011 (8) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... , which are chargeable for Central Excise duty under sub-heading 2106.00, 2404.49, 2404.47 and 2108.99 respectively of the Central Excise Tariff. Both Shri Rajesh Agrawal and Shri Rajesh Dixit are the authorised representatives of the appellant company. The appellant company s factory was visited by the jurisdictional Central Excise officers on 29.05.03. At that time the officers checked the stock of raw materials as well as finished products. They found shortage of 6187 kg. of Supari and also shortage of Lamination, containers and Zippers in respect of which Cenvat Credit amounting to Rs.40,022/- had been taken. Though at that time excess stock of finished products - Gutka and Pan Masala was also found which were over and above the recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs.1,53,239/- and Cenvat Credit demand of Rs.40,022/- and also reduced the penalty on the appellant company to Rs.1,40,000/-. The penalty on Shri Rajesh Dixit and Shri Rajesh Agrawal, however, was upheld. Against this order of the Commissioner(Appeals), the present appeals have been filed. 2. Heard both the sides. At the time of hearing, Shri Vinod, Clerk of the Counsel representing the Appellants, appeared and filed Written Submissions on behalf of Appellants with request for deciding the matter on the basis of same. 2.1. In the Written Submissions of the Appellants, it was pleaded that the duty demand of Rs.1,53,239/- is based on the shortages of various varieties of Laminates and Zippers, that just on the basis of short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand of Rs.1,53,239/- on alleged manufacture and clearance of Gutka and the Cenvat Credit demand of of Rs.40,022/- is based on shortage of Lamination and Zippers. The appellant s contention is that the shortage of these items Laminates, containers and Zippers is due to wastage which in the process of manufacture of Gutka is inevitable and that in absence of shortage of other ingredients of Gutka, Supari, lime, Kattha, Tobacco etc. and just on the basis of shortage of Laminates, containers and Zippers, it cannot be presumed that the missing Laminates, containers and Zippers had been used for manufacture of Gutka cleared clandestinely without payment of duty. 4. So far as Supari is concerned which comprises of about 75% by weight, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re involved in acquiring possession of or in transporting, removing, selling or purchasing of any excisable goods or in any other manner dealing with excisable goods, which they knew or had reason to believe were liable for confiscation. Just for wrong availment of Cenvat Credit of Rs.40,022/- by the appellant company, penalty under Rule 26 on its authorised signatories would not be justified. In view of this, penalty on Shri Rajesh Dixit and Shri Rajesh Agrawal, authorised signatories of the appellant company is liable to be set aside. 8. In view of the above discussion, while the Commissioner(Appeals) s order with regard to Cenvat Credit demand of Rs.40,022/- along with interest is upheld, duty demand of Rs.1,53,239/- is set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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