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2011 (9) TMI 871 - CESTAT NEW DELHIConfiscation of goods - raw materials found stored in the adjoining godown of the factory premises - Held that:- Admittedly there was no shortage or excess of raw materials in the factory of the appellants at the time of visit of the officers. The raw material which stands confiscated by the authorities below was being stored in an adjoining godown of the appellants. Admittedly, the same has not reached the factory premises and the appellants had not availed the credit in respect of the same. The lower authorities by referring to the provisions of Rule 25, have imposed penalty upon the appellants under Rule 26. On going through Rule 25, I find that neither of the sub-clause of said rule gets invoked. The lower authorities have not referred to any provision of law requiring the assessee to account for the raw materials which might have been purchased by him and stored outside the factory premises of the appellants. I do not find any justifiable reason to either confiscate the said seized raw materials or to impose penalty upon the appellants. Accordingly, the impugned order are set aside - Decided in favour of assessee.
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