2012 (7) TMI 230

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.... While reading paragraphs 5.5, 5.6 & 5.7 with paragraph 5.8 of the Appellate Order, it is not possible to understand why there was contradictory approach of appellate authority to reach to his conclusion. In para 5.5, he noted that there was admitted shortage and has also appreciated that it was obligation of the assessee to account for goods on which Cenvat credit was claimed. He also recorded ....

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....11AC of the Central Excise Act, 1944. While concluding, in para 5.8 he confirmed the duty demand. All these noting clearly suggests that the appellate authority was not able to conclude in accordance with law, when he opined that the shortage was liable to duty and that has been paid by the assessee. Once this was the position, he should not have further acted haphazardly in reducing the penalty. ....

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....the raw materials were removed as such or those must have been instrumented to make finished goods for clandestine removal. It would be proper, if the first appellate authority thoroughly re-examines the facts and evidence and come to a rationale conclusion about the veracity of the show cause notice.   3. In the result, appeal is remanded to the appellate authority to record proper fact f....

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.... with the grounds of appeal of Revenue along with submissions of the assessee, if any, and material facts and evidence that shall come before him in the course of re-adjudication. The Authority shall grant reasonable opportunity of hearing to the assessee and decide the matter of determination of duty liability as well as penal consequence of law.   4. Aforesaid order has been passed in ab....