TaxTMI 
TaxTMI 
2015 (2) TMI 223
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....mmissioner (Appeals) has held that there was no tangible evidence of clandestine removal of goods and accordingly the provisions of section 11AC were not applicable in the case of the appellants. Despite substantial benefit granted by the Commissioner (Appeals), they are in appeal before the Tribunal with the request to set aside confirmation of demand of duty/credit and dropping of imposition of penalties. 2. The brief facts of the case are that the appellants are engaged in the manufacture of M.S.Ingots, Bars falling under Chapter 72 of the First Schedule to the Central Excise Tariff Act, 1985. The main raw material for the manufacture of M.S.Bars was M.S.Ingots. The officers of the Central Preventive Customs & Central Excise, Meerut-I....
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....to impose penalty under section 11AC of Central Excise Act. He contended that the weight has been taken on average basis and percentage comes to 2.55% in the M.s.Ingots and in the bars 8.5% against the book balance 378.445 MT. Shortage of ingots was 9.65 MT. He also contended that in case of loose TMT and mixed lot of round, TMT and TMT & Tor, he claimed that it was done on eyes estimation basis. He referred to the judgment of Honble Allahabad High Court in the case of Minakshi Castings-2011 (274) ELT 180 (All.) and Single Member judgement of the Tribunal in the case of CCE, Meerut-I vs. Sri Jaibalaji Ispat Pvt.ltd.-2014 (310) ELT 556 (Tri.-Del.). He requested that there is no case of the department. 5. On the other hand, ld.DR submitted....
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....eighments were done in the factory which were based on weight indicated by the representative of the appellant and accordingly that was made basis of calculation. This fact is not contested by the appellant. Only contest is weight of loose TMT and mixed lot of round, TMT and Tor and the bar. I find that their representative associated in weighment and consequent determination of shortage and those conclusions were duly accepted with signatures on verification report put by the authorised representative of the appellant. Raising those points at this level is not acceptable as fact of shortage is clearly manifested and acceptance of shortage by their representative and consequent deposit of duty on the shortage voluntarily clearly indicated t....
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....e. He also referred to the judgement of High Court of Allahabad regarding non imposition of penalty under section 11AC. This case is not relevant in the present proceedings as the Commissioner (Appeals) has already agreed for non imposition of penalty under section 11AC. Department is not in appeal before the Tribunal against reduction of penalties. 12. I have also gone through the judgement quoted by the Revenue in the case of M/s.Bajrang Petro Chemicals (P) Ltd.-2014-TIOL-2254-HC-ALL-CX wherein it has been held as under: There was a huge shortage of finished goods for which no explanation was offered by the appellant at the time of stock checking. It means that the appellant had admitted the shortage and paid the duty accordingly. T....