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2014 (8) TMI 915 - AT - Central ExciseConfiscation of goods - Clandestine removal of goods - penalty imposed under Rule 26 of Central Excise Rules, 2002 - clearance of the goods from the factory - Held that:- On perusal of the judgement rendered in the case of Eurasia Marbles Pvt. Ltd., referred to above, it is observed that this judgement relating to 100% EOU and cannot be applied to the facts of present case. It is observed that the Commissioner (Appeals) has modified the order of adjudicating authority by reducing redemption fine to 10% of the value of the confiscated goods. I find that very liberal view was taken by the Commissioner (Appeals). I find no interference in respect of reduction of redemption fine is warranted. Regarding imposition of penalty of equivalent amount of ₹ 3,25,753/- on the confiscated goods, ld.Chartered Accountant has made a point that since the goods have not been cleared from the factory though it is admitted fact that there was excess stock of 70.375 MT of ingots which is the production of almost of 3 to 4 days clearly indicate that production was not properly recorded in the accounts, violations are clearly noted which point finger towards non-accountal with intent to clear later on. However, since goods were within factory, means rea manifesting that goods were ready for clandestine removal has not been reached the stage, accordingly, I find force in his contention that this is not the case of imposition of equivalent penalty under section 11AC and this is case of only confiscation of goods and imposition of penalty. Decided partly in favour of assessee.
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