Penalty u/s. 11AC(1)(a) leviable due to shortage detected during search: CESTAT Delhi

Tridev Ispat Pvt. Ltd. Vs Commissioner of Central Goods (CESTAT Delhi) CESTAT Delhi held that imposition of penalty under section 11AC(1)(a) of the Central Excise Act, 1944 mandatory on account of shortage detected during the course of search. Accordingly, penalty upheld. Facts- M/s. Tridev Ispat Pvt. Ltd. is engaged in manufacture of M.S. Ingots, for which, Sponge Iron, Pig Iron, and scrap are the raw materials. During the search conducted at the factory premises of the appellant, shortage of 197.115 MT. M.S. Ingots (finished goods), 154.56 MT of Sponge Iron and 11.04 MT of Pig Iron (raw mate...