TaxTMI 
TaxTMI 
2009 (6) TMI 917
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....landestine removal of dutiable Kraft paper, physical stock verification and investigation were conducted by the Range Superintendent. It appeared that there was a mis-match in the physical stock and the book stock, which was checked by the authorities. As it appeared that the applicants had cleared the export goods without payment of Central Excise Duty and without following the Central Excise Procedure, a Show Cause Notice was issued to the appellant demanding Central Excise duty along with interest and proposed to impose penalty under Section 11AC and under Rule 25 of the Central Excise Rules, 2002. A Show Cause Notice was also issued to Shri M.S. More, MD for imposition of penalty under Rule 26 of the Central Excise Rules, 2002. The Adju....
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....t the shortage of the kraft paper to the extent of 141.066 MTs and also discharged the duty liability. It is his submission that there is no evidence/record regarding the clandestine removal of the said goods. He would submit that there are no statements from the buyers and there is no corroborative evidence either in the form of labour charges, electricity consumption, raw materials consumption, etc. Hence, the allegation of clandestine removal is not sustainable. It is his submission that no further investigation had been done at the hands of the persons who recorded the slips/registers wherein the quantity produced was shown more than the quantity as accounted in the statutory book RG-I. It is his submission that the valuation adopted fo....
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....iate proceedings without further loss of time. He would submit that the impugned order be set aside on the ground of limitation as well as on the merits. 4. The learned SDR, on the other hand, would submit that it is on record that the Weighment Register, which is kept on the shop floor is showing production which is higher than the production recorded in the RG-I Register. It is also her submission that the appellants, on their own, have accepted that they have cleared 141.066 MTs clandestinely without payment of duty. It is her submission that there is a clear evidence that there is clandestine removal and hence the contentions of the learned Counsel in this case are totally irrelevant and the impugned order should be upheld as i....
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...., dated 24-1-2002, addressed to the Superintendent of Central Excise incharge of the factory, the appellants have informed as under. "However, we also like to state that the clearance of said quantity of 141.066 MTs has been accounted in our books of accounts and also the parties account to whom the material was sent has been debited with value of sales. The clearances have been done under Form-39 issued by the Sales Tax Department, Government of Karnataka and hence, there was no mala fide on our part to evade C. Ex. duty. As our unit was under exemption and the mistake on the part of the clerk looking after the clearances of not issuing invoices has escaped unverified." 6.1 It can be seen that there is a clear admission that Cen....