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2015 (4) TMI 1015 - AT - CustomsDuty demand - DTA Clearances - Shortage of goods - Confiscation - Imposition of redemption fine and penalty - Held that:- Adjudicating Authority has not given option for payment of the penalty of 25% of the duty along with entire duty and interest within 30 days from the date of receipt of Adjudication order as per Section 11AC of Central Excise Act, 1944. The High Court of Gujarat in the case of CCE, Surat Vs Rajshree Mill Pvt Ltd - [2014 (9) TMI 291 - GUJARAT HIGH COURT]. held that the assessee is entitled to get an option for payment of reduction of penalty 25% of duty within 30 days from the date of receipt of Adjudication order, by the Adjudicating Authority. Regarding the other issue, the Larger Bench of the Tribunal in the case of Shiv Kripa Ispat Pvt Ltd (2009 (1) TMI 124 - CESTAT MUMBAI) held that if the goods are not available for seizure, confiscation and redemption amount cannot be sustained. Regarding the demand of Customs duty on the raw material used in the manufacture of final products, we find that the Adjudicating Authority had also confirmed demand of Central Excise duty on the finished product, which has been paid by the appellant. The Tribunal in the case of Sanjay Twisters (2007 (9) TMI 369 - CESTAT, AHMEDABAD) rejected the appeal of the Revenue on the identical issue and held that duty demanded on duty free imported raw material by availing the exemption notification used in final product, cleared in DTA and demand of Central Excise duty was raised, Customs duty on raw material cannot be sustained. Regarding the imposition of penalty on the Director, it is noticed that separate penalties were imposed under the Customs Act and Central Excise Act, which cannot be sustained. - demand of Customs duty alongwith interest and penalty under the Customs Act are set aside. The confiscation of the goods which is not available and imposition of redemption fine are also set aside - Decided in favour of assessee.
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