2007 (2) TMI 449

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....na, DR, for the Respondent. [Order]. - In this case, by Final Order No. A/328-329/05-NB(S) dated 2-3-2005 and Misc. Order No. 34/06-SM (BR) dated 9-12-2005, the Tribunal set aside the penalty imposed under Section 11AC of Central Excise Act, 1944 and allowed the appeals filed by the appellants. Revenue filed appeal before the Hon'ble High Court of Punjab & Haryana against the said order of t....

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....ling under Chapter 48 of the Central Excise Tariff Act, 1985. They were using the waste paper as their main raw material for the manufacture of their final products. On 18-2-2003, the Central Excise Officers visited their factory and verified the stock of raw material and finished goods. During stock verification, the said officers detected shortage of raw material and finished goods. Shri Ajay Go....

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.... duty and to appropriate the same amount as deposited by the appellants and to impose penalty under Section 11AC of the Central Excise Act. The Adjudicating authority confirmed the demand of duty and adjusted the same against deposit and also imposed penalty of equal amount under Section 11AC of the Act, 1944, which was upheld by the Commissioner Appeals). 3. The learned Advocate submits t....

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....erefore, it is a fit case to invoke Section 11 AC of the Central Excise Act, 1944. 5. After hearing both sides and on perusal of the record, it appears from the impugned orders that the demand of duty on raw material found short is based on the presumption that the said raw material must have been used in the manufacture of the final products which were ultimately cleared without payment o....