CCE Vs. TRELA FOOTWEAR EXPORTS PVT. LTD.

JUDGEMENT

(1.) These two appeals are filed against the order of the Commissioner (Appeals) dt.19.11.04, one by the assessee challenging the order to the extent that it upholds the order of the adjudicating authority and the other by the Revenue to the extent that the penalty is set -aside.

(2.) WHEN the premises of the appellant - assessee were raided, it was found that the goods P.V. Soles valued at Rs. 6,40,500/ - manufactured by the assessee were removed during the period from 10.11.01 to 5.12.01 without issuing any invoice and without payment of duty.

(3.) THE adjudicating authority on the basis of the material on record particularly the admission of the Authorised Signatory, Shri Raghuraj Singh, and Director, Smt. Beena Sachdeva held that the goods were clandestinely removed and that the assessee was liable to pay Central Excise Duty of Rs. 1,02,480/ -. He also imposed penalty under Section 11AC of the Central Excise Act, 1944 for suppression of the manufacture of the goods and their clandestine removal, besides imposing penalty of Rs. 25,000/ - under Rule 25 on the company, Rs. 10,000/ - under Rule 26 on Raghuraj Singh and Rs. 25,000/ - under Rule 26 on Smt. Beena, Director. The authorized representative and the Director have not appealed against the impugned order and did not file any appeal before the Commissioner (Appeals) as stated by the learned Counsel on the basis of the order passed. The Appellate Commissioner in the appeal filed by the assessee company while upholding the duty liability modified the order of the adjudicating authority by setting aside the penalty imposed under Section 11AC on the company.