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TMI Blog2004 (7) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals) whereby the appeal of the appellants against the order-in-original was rejected. In the order-in-original the adjudicating authority had confirmed the demand of excise duty of Rs. 35,886/- in respect of shortage in the raw material stock. Besides, Central Excise duty of Rs. 78,754/- was confirmed in respect of clearances of samples during the period of October 1993 and September ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of the said duty before issue of show cause notice does not erase the fact of removal of inputs without payment of duty thereon. 4. Demand for duty on samples taken from each batch of the medicine, to ascertain as to whether or not the medicines have attained the stage of marketability has been contested. The ld. counsel pleaded that such samples can not be subjected to duty in terms of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el wherein the Hon'ble Supreme Court had held that, the cigarettes sticks sent within the factory for quality test is not exempted from excise duty. However, he pointed out that in the said case the Hon'ble Supreme Court had given the above ruling, taking into account the fact that the appellants could not produce any documentary evidence to show that the cigarette sticks were destroyed during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce to removal of input on account of shortage of stocks of inputs. The duty amount of Rs. 35,886/- is not in dispute and not the subject matter of the appeal. 6. In the light of the discussion above, I feel that penalty of Rs. 36,000/- imposed has to be reduced. 7. Accordingly, I allow the appeal partly by reducing the penalty of Rs. 36,000/- to Rs. 5,000/-. The duty demand to the extent of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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