2005 (10) TMI 19

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....hapter 54 Schedule to CETA. Physical verification a stock lying in the appellants unit revealed that it did not tally with the bank balance. On being asked about the shortages, Shri K.M. Nair Manager-cum Authorized signatory of the mills stated that they had not made the entry of production and clearance of the goods on 24/25-12-94 due to shortages of staff etc. The officers' noticed that even aft....

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....lakhs imposed a penalty of Rs. 10 lakhs on the Director of the Company and imposed a penalty of Ks. 2.5 lakhs on the Manager-cum-authorized signatory under Rule 209A of the Central Excise Rules. Hence the appeals. 2. Heard both sides. 3. The ld. Advocate while admitting that there is an evasion of duty pleaded that there are extenuating circumstances in this case in-as-much-as the entire dut....

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....dication proceedings were, concluded, penal action to confiscate plant and machinery is not called for. With regard to penalties imposed on the individuals he pleaded that the impugned order does not hold that the goods supposed to have been removed without payment of duty are liable to confiscation in which case alone Rule 209A could have been invoked. In the absence of any finding that the goods....

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.... of duty and this facts calls for a lenient view. We hold that a penalty of Ks. 12 lakhs on the company is sufficient and would meet the ends of justice. We accordingly reduce the penalty to Rs. 12 lakhs under Rule 173Q of the Central Excise Rules. In so far as the interest demanded under Section 11AB is concerned we hold that such a demand is not tenable keeping the period of dispute in mind. We ....