Clandestine clearance penalty restored where duty evasion was admitted and no reason supported deletion of the penalty.

Clandestine clearance of processed goods without payment of duty justified penalty where the assessee admitted removal without duty and later deposited the duty amount. The appellate authority had set aside the penalty without giving any specific reason for that deletion and had mainly addressed penalties imposed on employees under Rule 209A. In the absence of any supporting finding for interference and in view of the admitted duty evasion, the penalty on the respondent was restored and the Revenue's appeal succeeded.

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Issues: Whether the penalty imposed on the respondent for clandestine clearance of processed goods without payment of duty was liable to be sustained.

Analysis: The respondent had admitted that the goods were cleared without payment of duty and had also deposited the duty amount. The Commissioner (Appeals) set aside the penalties without giving any reason in relation to the respondent, while dealing mainly with penalties imposed on employees under Rule 209A. In the absence of any finding supporting deletion of penalty, and in view of the admitted duty evasion, the appellate interference with the penalty was not justified.

Conclusion: The penalty on the respondent was restored and the Revenue's appeal was allowed.

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