2009 (2) TMI 533

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.... Shri A.K. Rastogi, DR, for the Respondent. [Order per : P.K. Das, Member (J)]. - The relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of yarn falling under Chapter 55 of Central Excise Tariff Act, 1985. Central Excise officers visited the factory premises on 15-3-2003 and on physical verification of stock, they detected shortage of 51.847 M.T. of....

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.... 2. Learned Advocate submits that the Director of the appellant-company was out of station due to by-pass surgery. The authorized signatory at the time of visit of the Central Excise officers admitted the shortage and debited the duty. There is no evidence of clandestine removal of the goods and, therefore, penalty under Section 11AC of the Central Excise Act, 1944 is not sustainable. He r....

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....his statement could not explain the shortage as the Director of the appellant-company was out of station as he was admitted in a hospital for By-pass surgery. Further, Shri Padam Dalmia, Director of the firm also in his statement could not explain the shortage as he was out of station during the material time due to By-pass surgery. We do not find any material for clandestine removal of the goods.....