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2014 (9) TMI 586 - AT - Central ExciseConfiscation of goods - Penalty u/s 11AC - Redemption fine - Held that:- All the goods had been booked through the transporter M/s. Arun Goods Transport Company. The goods covered under three GRs No. 918, 919 and 920 all dated 24.6.09 and consigned to Shri Chander Prakash of Burhanpur, Shri Raju Bhai of Khandwa and M/s Hemant Traders of Vishnagar had been booked by M/s. Shiva Traders and there is no dispute that the goods covered/under these three GRs, had been manufactured by the Appellant company. M/s. Shiva Traders have been found to be a factitions entity. While in respect of the above mentioned goods seized from the truck there were no Central Excise invoices issued by the manufacturer evidencing payment of duty, on 24.6.09, the appellant have issued 3 invoices No. 14, 15 and 16 dated 24.6.2009 showing clearance of the consignments of snuff to Shri Chander Prakash of Burhanpur, Shri Raju Bhai of Khandwa and M/s Hemant Traders of Vishnagar. Since the goods covered under GRs No. 918, 919 and 920 all dated 24.6.09 seized from the truck were consigned to Shri Chander Prakash of Burhanpur, Shri Raju Bhai of Khandwa and M/s Hemant Traders of Vishnagar and since on the same date the appellant have also issued invoices No. 14, 15 and 16 dated 24.6.2009 to these very persons showing clearance of the goods to them on payment of duty, just because the consignor of the, goods mentioned in the GRs is M/s. Shiva Traders and no invoices has been issued by the Appellant to M/s. Shiva Traders, it cannot be inferred that the goods covered under the three GRs No. 918, 919 and 920 all dated 24.6.09 seized from the truck are different from the goods covered under the invoices No. 14,15 & 16 dt. 24/6/07 and had been cleared by the Appellant without payment of duty, as it is not the Department s case that the seized goods covered under the three G-Rs and the goods covered under the three invoices No 14,15 & 16 dt. 24/6/07 are different in terms of quantity. Since the Appellant have already debited the duty on the goods cleared under invoice Nos. 14, 15 and 16 dated 24.6.2009, duty in respect of same goods cannot be demanded. However, looking to the conduct of the appellant, penalty under Rule 25 would be warranted. In view of this, while the duty demand is set aside, the imposition of penalty on them is upheld. - Decided partly in favour of assessee.
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