2012 (4) TMI 412

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....tor of the company was present on the day when the stock checking was done and has accepted the shortages in his statement dt.11.02.2006. Further follow-up statements of the director Shri Bhalodia were recorded on 10.10.06 and has admitted the illicit clearances of the finished goods and raw materials. Show Cause Notice was issued to both the appellants for demand of duty from appellant No.1 and for imposition of penalty in the case of individual. The adjudicating authority confirmed the demand with interest imposed equal amount of penalty on the assessee-appellant and also on the individual appellant. On an appeal, the first appellate authority has upheld the confirmation of demand of duty, interest thereof and equal amount of penalty on t....

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....already accepted the fact that there is clandestine removal of raw material as well as finished goods. It is his submission that these statements of the director were not retracted at all. He submits that once the modus operandi is accepted by the director, proving the matter beyond doubt does not arise at all.   5. I have considered the submissions made by both sides and perused the records.   6. On perusal of the records, I find that the director of the Company Shri J.G. Bhalodia, (the appellant before me in Appeal No.E/1829/2010), in his statement, dt.10.10.2006, has categorically stated as under:   On being asked, I have to state that I am looking after all the day to day work of the unit including Central Excise....

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....austic Soda Lye was sold for Rs.1,02,000/- and 2000 kgs of Ethylene Oxide was sold for Rs.1,24,000/-, the said goods were sold illicitly in the open market, on cash payment basis without accounting for the clerances in our unit s records, without issue of Central Excise invoices and without payment of duty leviable thereon. On being further asked, I have to state that the raw materials found short during the course of Panchnama, as detailed above, were cleared as such from the factory without carrying any manufacturing activity. On being asked regarding the name and address of the buyer of the above mentioned goods, I have to state that some two three persons had approached in our factory during the month of January, 2006, along with their ....