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2013 (9) TMI 616 - AT - Central ExciseConfiscation of raw material - scope of Rule 25 - Excisable goods procured as raw materials found in the factory premises were not stored in a routine manner, but were purposely kept unaccounted - Categorical statement of the Director, Mr. Kamalesh Ladha, that the said excisable goods were procured with a specific intention to use it as raw material in the manufacture of finished excisable goods intended to be removed clandestinely without payment of duty – Held that:- Clause (b) of Rule 25(1) of Central Excise Rules, 2002 could be invoked for confiscation of the said non-accounted ‘excisable goods’ stored in the factory premises for its use as raw materials by a manufacturer – In none of the judgments referred to by the appellant, admission like the one made by the Director, Shri Ladha that the raw materials were procured with an intention for its utilization in the manufacture of finished goods meant to be removed without payment of duty, was present - Therefore, the judgments referred to by the ld. Advocate are not applicable to the facts of the present case – Appeal rejected – Decided against the Assessee. Meaning of excisable goods used in the Rule 25 of the Central Excise Rules, 2002 – Submitted by appellant that expression ‘excisable goods’ mentioned in clause (b) of the said sub-rule, refers only to the goods manufactured by the manufacturer – Held that:- The said Rule 25 is a penal provision and enumerates various situations and clause (b) of the sub-rule (1) is directed against non-accountal of excisable goods produced or manufactured or stored refers, inter alia, also to a manufacturer, who does not account for any excisable goods produced or manufactured or stored by him. The word ‘or’ in the said clause should be read disjunctively - Excisable goods defined at Sec. 2(d) of Central Excise Act, 1944 as goods specified in [[the First Schedule and the Second Schedule] to the Central Excise Tariff Act, 1985 (5 of 1986)] as being subject to a duty of excise and includes salt - Besides, the use of the word ‘any’ before the word excisable goods, in the said clause, makes it more clear and points out to a plausible interpretation that the said Rule is not only refers to the excisable goods manufactured and stored in the factory by a manufacturer but also excisable goods manufactured elsewhere and stored in the factory. - Decided against the assessee.
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