2007 (11) TMI 509

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....emant Bajaj, Advocate, for the Respondent. [Order]. - The Revenue filed this appeal against order-in-appeal No. IND-I/668/2003, dated 18-12-2003 passed by the Commissioner (Appeals) Central Excise, Indore. 2. The relevant facts of the case in brief are that the respondents are engaged in the manufacture of M.S. angles, CTD bars, channels etc. classifiable under sub-heading No. 7216.9....

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....ted the amount as already deposited by them. He imposed penalty of equal amount of duty under Rule 25 of Central Excise Rules, 2003 read with Section 11AC of the Central Excise Act, 1944. The Commissioner (Appeals) set-aside the adjudication order. Hence, the Revenue filed this appeal. 3. Learned DR on behalf of the revenue submits that the shortage was detected during the stock verificati....

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....orted in 2006 (200) E.L.T. 86 (Tri. Bang.). He further submits that there is no evidence of clandestine removal and mandatory penalty cannot be sustainable. He reiterates the finding of the Commissioner (Appeals). 5. After hearing both the sides and on perusal of the record, it is seen that on 7-9-2001, the Central Excise Officers detected the shortage of raw materials and finished goods. ....

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.... force. Therefore, the appropriation of the duty by the adjudicating authority is legal and proper and it is upheld. 6. Regarding imposition of mandatory penalty under Section 11AC of the Central Excise Act, 1944, I find force in the submission of the learned Advocate. Penalty under Section 11AC of the Central Excise Act, 1944 would be imposed in the case of fraud, collusion or wilful mis-....