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2015 (11) TMI 459 - CESTAT NEW DELHIConfiscation of goods - Clandestine removal - Imposition of redemption fine and penalty - Held that:- when appellant is manufacturing two types of goods and while counting ingots it is not coming out from the facts of the case that how much of ingots are 3-4 inches and how much ingots are 3.5x4.5 inches. Therefore, the weighment method on average basis cannot be correct. Therefore, there may be a variation while taking the stock. In these circumstances, the method of counting the stock is not correct in the case of M/s. Jaideep Ispat & Alloys P Ltd. Therefore, excess stock found may be due to this variance. In these circumstances, the excess stock found in the case of M/s. Jaideep Ispat & Alloys P Ltd. unit 1 & 3 are not liable for confiscation. Further, I find that in the case of M/s. Moira Steels Ltd. there is also excess stock found is less than 5%. There may be a variance of stock taking on average basis. In this case also the appellant is manufacturing two types of MS ingots. Therefore, allegation of excess stock on average basis cannot be alleged against the appellant. Allegation made against the appellant that these goods are meant for clearance clandestinely without payment of duty is correct. Consequently, I hold that in the case of M/s. Shivangi Estate Ltd. the goods are liable for confiscation. But I find that the duty involvement in the said goods is only ₹ 31,252/-whereas redemption fine and penalties are imposed are highly excessive i.e. redemption fine of ₹ 1,50,000/- and penalty of ₹ 75,000/- on M/s. Shivangi Estate Ltd. and penalty of ₹ 1,00,000/- on Pankaj Bansal, Director. - However, in the case of these three appellants mentioned in para 8 above goods are not liable for confiscation. Consequently, redemption fine and penalty on the manufacturer appellant are not imposable - Decided partly in favour of assessee.
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