2012 (7) TMI 835

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....s. Dhara Fabrics Pvt. Ltd. containing 41 delivery challans and invoices of the appellant unit showing delivery of textured yarn to M/s. Dhara Fabrics Pvt. Ltd. on different dates. After detailed investigations and recording statements, it was noticed that the main appellant have illicitly removed textured yarn to the tune of Rs.7503.170 Kgs without payment of central excise duty. The fact of illicit removal was admitted by Shri Ratan Singh Purohit supervisor cum authorised signatory of the appellant. Show cause notice was issued to the appellants and the adjudicating authority has confirmed the demands raised in the show cause notice along with equivalent amount of penalty and personal penalty on the individual. Aggrieved by such an order, ....

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.... submitted by the appellant at the appeal stage cannot be verified. 5. On careful consideration of the submissions made by both sides, we find that in this case, the statement of the authorised signatory clearly indicates that the appellants were removing the goods illicitly from the factory premises. On specific question from the Bench, the appellant's counsel was not able to state whether the said statement was retracted or any contrary evidence is produced on record except for the invoices which indicate purchase of textured yarn from the market. We find that the first appellate authority as well as the adjudicating authority in their orders have properly analysed the evidences produced by the appellant. We find only one small error in ....

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....ellant. Accordingly, in our considered view, the ends of justice will be met, if the penalty imposed under Rule 173Q of erstwhile Central Excise Rules, 1944, on the main appellant M/s. KDS Textiles Pvt. Ltd. is reduced to Rs.2.5 lakhs instead of Rs.5,36,655/-. 7. As regards the personal penalty imposed on the individual, we find that the penalty of Rs.20,000/- imposed on the said person is justified and very reasonable one considering the fact that he being authorised signatory has given the statement that the appellant company was engaged in illicit removal of goods from the factory premises and the said statements stand un-retracted till date. 8. Accordingly, while upholding the duty liability on M/s. KDS Textiles Pvt. Ltd., we reduce t....