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2015 (3) TMI 1256 - AT - Central ExciseMolasses cleared to katcha pit at the time of entry in the DSR - demand of duty with interest and penalty - Held that: - the appellants in their DSR had shown removal of molasses to katcha pit. This means that the appellants themselves had treated removal of molasses to katcha pit as removal in accordance with the provisions of law. That being the position, it would not be appropriate to take a view in favor of the appellant that there was no removal. Having treated the storage in katcha pit and removal to the katcha pit as a removal, as per the provisions of Rule 8 of Central Excise Rules, 2002, the appellant should have discharged the duty liability without any further proceedings being initiated by the Revenue - demand for duty and interest is sustained. Penalty - Held that: - the appellant has lost the interest portion which they could have saved if they were to maintain the stock in the katcha pit in the DSR. For a mistake, penalty of ₹ 50,000/- is very high. Accordingly, some reduction in penalty is warranted - Penalty u/r 25 of Central Excise Rules, 2002 imposed on the appellant is reduced to ₹ 25,000/-. Appeal disposed off - decided partly in favor of appellant.
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