2011 (2) TMI 761

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....e of final products. The appellant also have a 100% EOU named M/s Modern Polyester Yarn. On 12/6/01, when the appellant's factory was visited by the Central Excise officers and stock taking of inputs as well as finished products was done, shortage of polyester staple fibre and viscose stable fibre in respect of which Cenvat credit involved was Rs. 1,23,331/-, was detected. Subsequently the staple fibre, which was found short in the factory premises of the appellant, was found lying in the factory premises of M/s Modern Polyester Yarn. Inquiry was made with Shri Rampal Gaggar, Authorised Signatory of the appellant s factory as well as Shri C.P. Sukhlecha, Vice President of the appellant company as well as of M/s Modern Polyester Yarn and the....

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....educed the penalty to Rs. 15,000/- on the ground that there is no intention to evade the duty and hence penalty equivalent to the duty demand is harsh. Against this order of the Tribunal, the Department filed a reference appeal before Hon'ble Rajasthan High Court and Hon'ble Rajasthan High Court vide order dated 22nd April 2008 dismissed the Department s appeal. Against this order of Hon'ble Rajasthan High Court, the Department filed a civil appeal No. 9610/2010 before Hon'ble Supreme Court and Apex Court vide order dated 8/11/10 while setting aside the order passed by the Hon'ble Rajasthan High Court, remanded the matter back to the Tribunal to decide the issue of penalty afresh in accordance with the law laid down by the Apex Court in its....

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....Rs. 1,23,331/- has been taken, had been removed by the appellant without reversing the credit and without issuing any invoice, to M/s Modern Polyester Yarn a 100% EOU belonging to the same group, that this fact has not been denied by Shri C.P. Sukhlacha, Vice President (Commercial) of the appellant company as well as by Shri Rampal Gaggar, Authorised Signatory of the appellant company, that no explanation has been given for removing the cenvated fibre to the factory of M/s Modern Polyester Yarn without issue of any invoice in a clandestine manner, that the manner in which this cenvated inputs has been removed without reversal of the Cenvat credit and without issue of invoices amounts of removal in a clandestine manner and, therefore, the co....