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TMI Blog2017 (7) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... n to give undue benefits. In these circumstances, penalty imposed on account of non-reversal of credit is upheld. Imposition of penalty on Directors - Held that: - while investigations were on, statement of Shri Sukumar N Shah, Managing Director was recorded wherein he personally explained the entire process. It was obvious that he was aware that all the activities at the material time. In thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eversal of Cenvat credit on the missing raw materials. Similarly, demand of duty was raised in respect of finished goods not found in the premises. Statements of various persons were recorded, in which they admitted to these facts. The statements were not retracted. Later on Cenvat Credit sought to be reversed was reversed by the appellants over a period of time. The demand of duty was confirmed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed on that count should also be set aside. 2.2 He further argued that the other noticee, namely, Shri Sukumar N Shah is a Director of the company and has no role to play in day to-day activities of the units and therefore, no penalty can be imposed on him. 3. Learned AR relied on the impugned order. He further pointed out that the clandestine clearance has admitted by the Director as w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no scope of any interpretation. Failure to reverse the credit gave direct monetary benefit to the appellant and ambiguous provision, no other conclusion can be reached except that the same was done with intention to give undue benefits. In these circumstances, penalty imposed on account of non-reversal of credit is upheld along with demand of reversal. 5. In so far as the demand of duty on fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e personally explained the entire process. It was obvious that he was aware that all the activities at the material time. In these circumstances, his involvement in the evasion of duty cannot be ignored. In these circumstances, imposition of penalty on the Director is also upheld. Consequently, both the appeals are dismissed. (Pronounced in Court on 15/6/17) - - TaxTMI - TMITax - Central ..... X X X X Extracts X X X X X X X X Extracts X X X X
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