Tribunal Modifies Order on Clandestine Cement Clearance: Confirms Duty, Overturns Penalty Due to Timely Payment.

The Appellate Tribunal CESTAT Kolkata addressed the clandestine clearance of 411 MT of Portland Cement without duty payment. The Tribunal confirmed the duty payment of Rs. 1,00,000/- by the appellant but overturned the penalty, citing timely payment and lack of stock taking. The order was modified to confirm the duty amount while partially allowing the appeals, emphasizing the significance of duty compliance and legal principles in penalty imposition.

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Issues: Alleged clandestine clearance of 411 MT of Portland Cement without payment of duty and cover of Central excise invoice.

The judgment by the Appellate Tribunal CESTAT Kolkata involved the case of alleged clandestine clearance of 411 MT of Portland Cement by the main appellant, a manufacturer of "Portland Slag Cement." The officers discovered the excess production and clearance during a visit to the factory, where a private record revealed the discrepancy. The Account's Manager and Director of the firm admitted to the clandestine clearance without duty payment. The appellant paid Rs. 1,00,000/- towards the duty leviable on the cleared goods. The appellant argued that no Show Cause Notice was required as the duty was paid before the due date. The Appellate Tribunal noted the admission of the shortage by the company officials and the removal of cement without duty payment. The Tribunal upheld the duty payment but set aside the penalty imposition, citing the payment made before the due date and the absence of stock taking as per legal principles. The order of the lower authority was modified to confirm the duty amount leviable and partially allow the appeals, overturning the penalty imposition on the appellants. The judgment emphasized the importance of duty payment and the legal principles governing penalty imposition in such cases.

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