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2016 (1) TMI 1251 - AT - Central Excise100% EOU - clandestine removal - supply of goods without issuance of invoice - confiscation - penalty - Held that: - once the CT 3 certificate was issued the duty liability if at all arises stands shifted to the recipient who has issued the CT3 certificate and the appellant s clearances are covered by CT 3 is not chargeable to duty. I find that there is indeed delay in obtaining the CT3 certificate but same can be considered as procedural lapse. SCN issued on 29-5-2000, at that time sub Rule 173Q (2) was not in force and the saving clause which was brought is Section 38A is effective from 11-5-2001 therefore there was no machinery provisions of sub rule (2) of 173Q on the date of issue of SCN, therefore confiscation of land, building etc is illegal accordingly, redemption find of ₹ 1 lacs is hereby dropped - As regard the redemption fine of ₹ 89,206/- on the confiscation goods valued of ₹ 3,56,825/-, I find that goods valued at ₹ 1,40,819/- were seized at premises of M/s. Volent Textile Mills Ltd at that stage, the goods did not belong to appellant therefore redemption fine cannot be demanded from appellant, however some redemption fine is warranted. Taking into consideration value of the goods seized at premises of M/s. Volent Textile Mills Ltd and other aspect I reduce the redemption fine of ₹ 89,206/- to ₹ 40,000/-. As regard the penalty of ₹ 4, 24, 373/- imposed under Section 11AC on the appellant, I find that since the duty liability was reduced as discussed above the said penalty shall also stands reduced to the duty stand confirmed as per the above discussion. Appeal disposed off - decided partly in favor of appellant.
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