2010 (10) TMI 316

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....i Anil Khanna, SDR, for the Respondent. [Order]. - By this appeal, the appellant is challenging the imposition of penalty under Section 11AC of Central Excise Act, 1944. 2. The brief facts of the case are that during the visit of the preventive officers in the factory premises of the appellant, shortages of finished goods and inputs were detected. On all those shortages, the appellan....

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....he basis of that formula they debited the inputs in their account and accounted the finished goods as per that formula. There is no weighment being done while issuing input and while entering in their statutory records. But on pointing out by the department, they paid duty. There is no finding against the appellant that they were involved in the activity of clandestine removal of goods and in the ....

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....visions of the Act or the Rules. In this case, there is clear cut finding by the lower appellate authority that there is no evidence on records that the appellants engaged in the activity of clandestine removal of the goods. The shortages during the course of visit of the preventive officers have been explained by the appellant as per their entries in the records. I find that the ingredients of Se....