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TMI Blog2017 (12) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... ation was dismissed in the impugned order. Shortage of raw material - Held that: - The Department failed to point out any basis that the electricity consumed in the factory was not in consonance with the production. There were five machines in the factory, but the rawmaterial was calculated on the basis of only two machines - the Department has not verified, in the course of investigation, the production capacity of the Company. The Department could not find any irregularity in the electricity consumption nor evidence was collected with regard to the alleged clandestine clearance of the finished goods for the period prior to the investigation and after search of the Company upto 30.06.2008. Penalty on Shri Chander Kumar Gupta - Held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment has been delivered to the assessee-Respondent as per the website report of the India Post. On another occasion, the notice has returned with the postal remarks left . On the last occasion, the Panchnama was executed. Thus, it is evident that on M/s M.R. Tobacco Pvt. Ltd. notice of service deemed has been complete. 3. On behalf of assessee-Respondent, Shri Chander Kumar Gupta [A.No.E/1064/2011], Ms. Mehak Gupta, learned counsel, appeared and submits that Shri Chander Kumar Gupta was the Director, who later resigned from the Company. She also submits that a penalty of ₹ 50,000/- was imposed on him which was duly paid. She further submits that in another case, a penalty of ₹ 50,00,000/- was imposed on the assessee-Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found excess and 630 kgs of tobacco, 25 kgs of perfume and 10 kgs of Katha were found short. Two machines were round the clock producing Pan Masala and Gutkha, but the assessee-Respondents have declared 12 hours operation of the machines in one shift only. The declaration regarding speed of the machines was also wrong. In the books of account proper entries of the raw-material was also not made. Lastly, he relied upon the reasons given in the show cause notice and made a request for setting aside of the impugned order. 6. We have heard both sides at length and gone through the material available on record. From the record, it appears that M/s M.R. Tobacco Pvt. Ltd. has declared the speed of the machines as 60-70 pouches per machine per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d clandestine clearance of the finished goods for the period prior to the investigation and after search of the Company upto 30.06.2008. No enquiry was made with any of the raw-material supplier except Noticee No. 3 or with the purchasers of the finished goods or with the transporters with regard to transportation of inputs from suppliers and transportation of the finished goods to various purchasers. 7. In view of this, we find no infirmity in the impugned order and the same is hereby upheld. 8. From the record, it appears that Shri Chander Kumar Gupta (assessee-Appellant) ceased to be a Director w.e.f. 15.07.2009 and has nothing to do with the Company. The reason for his resignation from the Company was his illness. The Hon ble High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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