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2009 (4) TMI 575 - AT - Central ExciseConfiscation and penalty - Cenvat/Modvat - Imposition of penalty - Held that: - a part of raw material received by the appellants under various bills of entry were stored at the adjacent premises belonging to M/s. N.K. Polymers. Admittedly, such raw material was of no use to M/s. N.K. Ploymers or M/s. A.P.I. Industrial Corporation. All the three units are located in one compound. The security guard of the whole compound at the gate is also one. A part of raw material was stored in the premises of other unit was on account of the place constraint. No mala fide stands attributed to the appellant. In fact, no duty demand stands raised against them in respect of the said goods. As such, I find no justification in confiscation of raw material, admittedly stored in the premises of the adjacent factory, which is situated in the same compound. The same is accordingly, set aside. Penalty - Held that: - admittedly, there has been technical and procedural breach of law by the said appellant, though without any mala fide intention. I find that provisions of sub Rule 25(1)(d), which provides for imposition of penalty for contravention the Rules with intent to evade duty, are not applicable. Such contravention would be covered under the provisions of Rule 27. As, there is breach of law on the part of appellant, some penalty is required to be imposed upon them. I reduce the penalty on M/s. Sanchit Polymers to ₹ 5,000/- (Rupees five thousand only) in terms of rule 27 - As regards penalties imposed on other appellants M/s. N.K. Polymers, in the premises of which factory the raw material was stocked, I do not find any role played by them so as to invite any penal action against them. Similarly, penalty imposed upon Shri Ghanshyam Das Goel, is also not called for. Appeal allowed - decided partly in favor of appellant.
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