TEHRI GIRDERS LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides and perused the records.

(2.) RELEVANT facts of the case, in brief, are that on 26 August, 2005 Central Excise officers visited the appellants factory and conducted stock verification of finished goods as well as inputs. The said officers detected shortage of inputs involving central excise duty of Rs. 1,69,728/ -. Authorized signatory of the appellant company admitted the shortage and debited the duty on 31st August, 2005. Original authority confirmed the demand of duty and appropriated the amount as deposited by the appellants. He also imposed penalty of equal amount under Section 11AC of Central Excise Act, 1944. The Commissioner (Appeals) reduced the penalty to Rs. 43,000/ -.

(3.) LEARNED D.R. submits that Commissioner (Appeals) has already reduced the penalty after considering the facts and circumstances of the case. He also submits that the appellants failed to explain the reason for shortage which implies clandestine removal of the goods. He also submits that the department is not required to establish clandestine removal by mathematical precision.