2001 (2) TMI 575

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....rregular marbles slabs were found short as against the entry made in statutory record. A statement was recorded from Shri O.P. Khandelwal, Director of the Company who admitted these aforesaid shortage. He further stated that due to his prolonged absence, the parties who get their block shown in their factory, had lifted the marble slabs forcibly. The party deposited a sum of Rs. 1,59,621/- in their PLA on 12-3-1997 in respect of the duty involved on the shortage of marbles slabs. 2. Subsequently M/s. Kanika Marbles and Shri O.P. Khandelwal, Director, were issued a show cause notice dated 27-4-1998 in which M/s. Kanika Marbles were called upon to show cause why duty amount of Rs. 1,59,621/- should not be recovered from them under Sec....

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....998 which is beyond a period of six months and therefore, the show cause notice in this matter is not sustainable. It is further contended that the show cause notice does not invoke the provisions under the proviso to Section 11A for the purpose of demand of duty and therefore, on this ground alone neither any recovery can be made from the appellants nor a penalty can be imposed on them under Section 11AC. As regards the penalty on Shri O.P. Khandelwal, Director it is contended that in this case shortage of goods has been noticed. The shortage in itself, it is contended, cannot be considered as removal and Shri Khandelwal as Director is in no way linked with any removal, hence no penalty is liable to be imposed on him. 6. Shri S.C. ....

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.... extended period for the demand cannot be sustained. In this regard it is observed that as per the facts on record certain shortages of the excessible goods manufactured by the appellants were found in their factory premises on 1-3-1997 which are admitted by the appellants and the duty deposited by them in their PLA within 12 days. Secondly, even in the show cause notice it is clearly alleged that the assessee had removed 5320.69 Sq.meters of marbles slabs clandestinely without issuing invoice without proper accountal in statutory records and payment of Central Excise duty thereby contravening the provisions of Central Excise Rules as mentioned therein. Therefore, they were called upon to show cause why the stated amount of duty should not ....