9911796707
TMI Blog2007 (11) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... to impose penalties on the party under Section 11AC of the Act and Rule 173Q of the Central Excise Rules, 1944. It also proposed penalties on some co-noticees. These proposals were contested. The adjudicating authority (Commissioner) confirmed the demand of duty only to the extent of Rs. 55,387/- against the respondents. It dropped the rest of the demand for want of evidence against the party. The authority also imposed penalty of Rs. 55,387/- (equal to the amount of duty demanded) on the respondents under Section 11AC. The present appeal of the Revenue is against the dropping of a major part of the demand on the respondents. 2. The application filed by the respondents (E/OT1/133/2005) is for rejecting the Revenue's appeal on the ground t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e yarn (dutiable) in the guise of hank yarn (exempted). A statement was recorded from the Managing Director of the company also, who did not corroborate the accountant's statement. The officers of the department visited the premises of the traders/buyers, whose names had been mentioned in the above despatch register as also in the above statements. These traders/buyers stated that they had received cone yarn under cover of invoices and that the invoices were subsequently taken back by the respondents and invoices showing clearance of hank yarn were substituted by them. However, one trader viz. Sree Gajendra Tex, in their statement, denied having any transactions with the respondents. The officers recovered 'doff notes' from the premises of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l precision. According to them, it is enough, if there is evidence indicating a high degree of probability of the respondents having clandestinely removed cone yarn from their factory during the period of dispute. The pieces of evidence cited by the appellant to establish this probability include: (a) the despatch register recovered from their premises; (b) the doff notes recovered from the premises of traders/buyers; (c) the statement of the respondent's accountant; (d) the statement of one Shri C. Sanjeevi Perumal of M/s. Ganapathy Sankaran Traders which was to the effect that they had sold the cone yarn received from the respondents to two parties stationed at Samisigapuram and Chatrapatti; and (e) record of cross-examination of traders/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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