2016 (12) TMI 1622

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....e office premises and recovered various records and documents. They also conducted physical stock verification and detected shortage of finished goods of 52.505 MT and inputs of 11.420 MT of Alloy Steel ingots. The said officers also recorded the statement of Sri Gourav Jajodia, Director of the appellant company. A Show Cause Notice dated 13/05/2011, was issued proposing demand of duty of Rs. 11,10,228/- alongwith interest and imposition of penalty on appellant No.1 and imposition of penalty on Sri Gaurav Jajodia, appellant No.2. It was also proposed to appropriate the amount of Rs. 8,00,000/- deposited voluntarily on ad hoc basis. 2. It was alleged that during the period 12/08/2008 to 30/11/2008, appellant No.1 removed the finished goods ....

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.... the annexure to Show Cause Notice and also referred to the case laws. 6. Heard both sides and perused the records. On perusal of the search list dated 5/12/2008, it is evident that the 48 challans were recovered from the premises of the appellant company. Appellant No.2, Director of the appellant company in his statement dated 26/08/2010 admitted that no central excise duty has been paid against clearances affected vide original challans. He also admitted that the duty liability may be adjusted from the ad hoc payment of Rs. 8,00,000/-. I find that the appellants have not given any explanation in respect of recovery of 48 challans from their premises. The Ld. Counsel, on behalf of the appellants attempted to establish that the said challa....