9911796707
TMI Blog2011 (2) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... or further dispatch. On interception of such lorries by the Departmental officers, the officers found that the lorries were accompanied with Delivery challans and were not accompanied with duty paying documents like Central Excise invoices etc. On follow up, it was noticed by the officers that in the statutory records RG-1 Register, the entries were also not made regarding the clearance of 9010 quintals of Sugar. The officers seized the said quantity of Sugar and issues show-cause notices for demand of the duty, confiscation of the goods and imposition of penalties. The appellant-company contested the show-cause notices before the adjudicating authority on the ground that this is "one time error" done by them as ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid duty would have been discharged by 5th of March, 2006. It is his submission that they have been making Delivery challans / material gate pass covering each lorry after loading and details are subsequently reflected in the books of accounts i.e. after loading the Sugar into wagon. It is his submission that the observations made by the ld. Commissioner(Appeals) as regards the knowledge of the assessee regarding the capacity of different types of wagon is sound in theory, but factually it remains that the Railway authorities would give them the wagons as is available which cannot be predicted and invoices for such quantity that could be loaded into the wagon can be issued. It is his submission that hence initially the Sug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. It is also undisputed that the said consignments were accompanied with Delivery challans and on physical verification of the stocks, it was noticed that only 9010 quintals of Sugar was found short in the factory premises. 7. On the above factual matrix and there being no dispute as regards the discharge of duty liability on the 9010 quintals of Sugar when the provisional clearances were sought, I hold that the duty liability on the said goods arises and having been discharged by the assessee, the impugned order to that extent is upheld. 8. As regards the redemption fine imposed by the lower authorities on the confiscation of the Sugar and lorries transported the said Sugar, I find that since there was no duty paying documents wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p; In view of this, the penalty imposed on the appellant-company under Section 11AC of the Central Excise Act, 1994 is set aside. 10. As regards the penalty imposed on the appellant-company under Rule 25 of the Central Excise Rules, 2002, I find that the appellant-company has not taken care to make entry of the quantity of Sugar cleared, in the RG-1 Register. In view of this, I hold that the penalty imposed by the adjudicating authority under Rule 25 of the Central Excise Rules, 2002 and upheld by the ld. Commissioner(Appeals) is correct and does not require any interference. 11. As regards the penalty imposed on the individual under Rule 26 of the Central Excise Rules, 2002, I find that there is no reason to visit the said individu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
