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2013 (6) TMI 441 - AT - Central ExciseExcess stock of stock found during search and seizure - raw material, finished goods and scrap - confiscation - redemption fine - Penalty - Held that:- there being no dispute as to finished goods and scrap being present in the factory premises unaccounted in the statutory records, they are liable for confiscation. The value of the such goods which were confiscated approximately comes to Rs.21 lakhs and imposition of redemption fine of Rs.3 lakhs, in my view seems to be excessive. In order to meet the ends of justice, the redemption fine imposed on the seizure of the finished goods as well as the scrap needs to be reduced which in my view should be Rs.1 lakh as against Rs.3 lakhs imposed by the lower authorities. The impugned order to that extent is modified and the redemption fine is reduced from Rs.3 lakhs to Rs.1 lakh. Regarding penalty - Held that:- the ends of justice would meet when the penalty is reduced from Rs.3 lakhs. Personal penalty on partners and employees - Held that:- the judgment of the Honble High Court of Gujarat in the case of Mohammed Farookh Mohammed Ghani [2010 (7) TMI 378 - GUJARAT HIGH COURT], Mahendra Kumar Kapadia [2010 (9) TMI 308 - GUJARAT HIGH COURT] and Jai Prakash Motwani [2009 (1) TMI 501 - GUJARAT HIGH COURT] will apply - no hesitation in holding the impugned order to the extent it upholds the penalty on the individuals is unsustainable and is liable to be set aside.
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