2011 (3) TMI 1119

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cked and in course of stock checking, shortage of 26,198/- dozens of tableware and kitchenware involving duty of Rs.1,29,523/- were found. Shri Bhupendra Sharma, Authorised Signatory, was present in the course of stock checking. On being asked, he could not give any explanation and only stated that the goods found short had been removed without payment of duty in his absence. The respondent, however, paid the duty involved on the goods found short. Subsequently, a show cause notice was issued to the respondent for confirmation of the duty demand and also for imposition of penalty on the respondent company under Section 11 AC and on Shri Bhupendra Sharma, Authorised Signatory of the respondent company under Rule 26 of the Central Excise R....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... was found for which no explanation was given by the respondent, that the shortage has been accepted by their Authorised Signatory, that as admitted by Shri Bhupendra Sharma, the goods had been removed clandestinely without payment of duty, that the fact of shortage of finished goods coupled with statement of Shri Bhupendra Sharma is a clear evidence that the goods found short have been removed without payment of duty, that no further corroborating evidence is required for proving the charge of clandestine removal, that the element necessary for imposition of penalty is present and hence, the Commissioner (Appeals)'s order setting aside the penalty is not correct, that in terms of Hon'ble Supreme Court's judgement in the case of Union of In....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tage of the goods, it cannot be alleged that the goods found short had been removed deliberately without payment of duty in a clandestine manner, have pleaded that in any case, since the duty had been paid prior to the issue of show cause notice, the proviso to Section 11 AC would be applicable and the penalty imposable would be 25% of the duty demanded.   6. I have carefully considered the submissions on behalf of the ld. DR and also the written submissions on behalf of the respondent.   7. In this case, there is no dispute about the shortage of goods 26,198 dozens of tableware and kitchenware involving duty of Rs.1,29,523/-. Shri Bhupendra Sharma, Authorised Signatory of the respondent company has not only admitted the sho....