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2015 (10) TMI 133 - AT - Central ExciseConfiscation of seized goods - penalty imposed under Rule 15 of the Cenvat Credit Rules, 2004 read with Section 11(AC) of the Act - Clandestine removal of the inputs and excess stock unaccounted in their records - Held that:- factory was closed on 15-5-2010 was intimated by the respondent to the department is correct. The respondent could not inform to the department when they started production again but at the time of visit on 6-7-2010 the factory was found running which shows that the respondent was involved in the activity of clandestine manufacture of goods and clearing thereof without payment of duty without accounting them in their books of accounts. Therefore, I do not agree with the contention of the ld. Commissioner (A) that it is the case of mere non accountal of goods in their statutory records. Considering the conduct of the respondent, I hold that excess stock found during investigation was meant for clandestine clearance without payment of duty. In these circumstances, I hold that goods are liable for confiscation. The same can be redeemed on payment of redemption fine. - total duty component works out to ₹ 1.61 lakhs but redemption fine is imposed to the tune of ₹ 4 lakhs which is excessively very high. Therefore, I reduce the redemption fine to ₹ 50,000/-. As intent of the respondent is very clear, therefore, I confirm the penalty imposed by the adjudicating authority appropriate. - Decided partly in favour of assessee.
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