Customs, Excise and Gold Tribunal - Mumbai
Ujagar Textile Inds. Ltd. vs Commissioner Of Central Excise on 13 February, 2004
Equivalent citations: 2004(167)ELT175(TRI-MUMBAI)
ORDER Jyoti Balasundaram, Member (J)
1. The Commissioner of Central Excise/ Mumbai, has confirmed a demand of additional duty of Rs. 21,36,202/- and imposed penalty of Rs. 2 lakhs upon the manufacturer as well as a penalty of Rs. 1 lakh on its director. Hence these appeals.
2. The demand arises on the ground that a certain quantity of man-made fabrics has been removed by the assessee clandestinely without payment of duty. It is contended that there is no clandestine clearance but a shrinkage which has occurred during the course of processing of the man-made fabrics and the percentage of shrinkage is about 3.78% which is well within the tolerance limit for shrinkage of 4.2%. Our attention is also drawn by the learned Counsel for the appellants to orders of the Central Excise authorities dropping the demands raised on identical grounds.
3. In view of the above, we accept the contention of the appellants that the duty demand is neither sustainable nor the penalty, set aside the impugned order and allow the appeals.