2002 (7) TMI 626

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.... Verma, JDR, for the Respondent. [Order]. -  The appellants manufacture Denatured Ethyl Alcohol falling under sub-heading 2204.00. The alcohol is manufactured from molasses. Their factory is closed since 30-7-1997. On 7-1-1999, the Central Excise preventive staff, Pathankot visited their factory premises and on verifying the stock position, they found a shortage of 4082.57 Qtls. of mola....

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....hould not be imposed on them under Rule 173Q. On considering the reply of the party, the Addl. Commissioner of Central Excise, Chandigarh-II vide his Order dated 18-4-2001 confirmed the duty of aforesaid amount on the party and further imposed a penalty of Rs. 50,000/- on them under Rule 173Q. 2. The party filed an appeal but the same is dismissed by Commissioner (Appeals), Chandigarh vide....

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....s knowledge since 6-10-1998. The original authority has recorded the following findings in his order : "I find that molasses i.e., raw material used for the manufacture of ethyl alcohol was found short. Noticee has failed to give any reason for this shortage even after admitting the facts that molasses were found short. So this is sufficient evidence to prove that the molasses found short were ....

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....d without payment of duty as averred above. No doubt, they have not been able to explain the reasons for shortage in the molasses - their raw material, but the conclusions by both the lower authorities that in the absence of adequate explanation, such molasses could have been used only in the manufacture of ethyl alcohol which was cleared by them clandestinely without payment of central excise dut....