2009 (12) TMI 738

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....2,11,874/- and has imposed a penalty of equal amount under Section 11AC of the Central Excise Act, 1944 in addition to imposing a further penalty of Rs. 25,000/- under Rule 173Q of the Central Excise Rules, 1944 and demanding interest under Section 11AB of the Act. The lower appellate authority has set aside the demand except for an amount of Rs. 387/-, and the penalty leading to this appeal by the Department. 2. Shri V.V. Hariharan, learned Jt. CDR appearing for the Department argues that the impugned Order-in-Appeal requires to be set aside for the reason that the same has been passed without taking into account the voluntary statements made by the Director and Despatch Clerk of the respondent-company to the effect that the clearances ....

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....that the statements were given by one Smt. Sujatha, Director of the company and the same cannot be relied upon as she was new and not in-charge of the day to day activities. He also reiterates the defence taken before the lower appellate authority. He argues that the original authority while confirming the demand had not allowed cum-duty assessment which is required to be allowed in the event, the explanation put forth by the respondents is not accepted by the Tribunal. Similarly, he states that the original authority has not allowed input duty credit in respect of inputs used in the alleged clandestine manufacture and clearance of the impugned goods. 4. After hearing both sides and perusal of case records, we find that the respondents h....