D.N. Patel, J. - (1.) This appeal has been preferred against the judgment and order delivered by the Customs Excise and Service Tax Appellate Tribunal, East Zonal Bench, Kolkata, in Appeal No. Ex. A.P. 401 of 2005, whereby the appeal preferred by' this appellant was dismissed by Customs Excise and Service Tax Appellate Tribunal, East Zonal Bench, Kolkata, (here in above to be referred as the CESTAT), vide order dated 10th February, 2012 and the order-in-original passed by Joint Commissioner, Central Excise dated 8th February, 2005 was confirmed, especially the order of mentioning of Rs. 5,85,964/- penalty imposed under Section 11-AC of the Central Excise Act, 1944, upon this appellant, because the duty was already determined under Section 11-A(2) of the Central Excise Act, 1944 was confirmed.
(2.) Having heard learned counsels for both the sides and looking to the facts and circumstances of the case, it appears that this appellant is a manufacturer of Emulsion Matrix falling under Chapter heading 30.02 of the First Schedule to the Central Excise Tariff Act, 1985. This appellant was stock transferring their intermediate product i.e. Emulsion Matrix from the place of manufacturing to its sister units located at Rajarapa and Rajmahal for the manufacturing of finished goods i.e. Emulking.
(3.) It further appears from the facts of the case that there was clandestine removal of the goods, especially of the intermediate products and, the goods were under-valued and thereby the Central Excise Duty was evaded. Thus, there was a evasion of the duty by this appellant by under valuing in the invoice of their intermediary product, sent from the manufacturing unit to the sister units for further captive conservations.;