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2015 (12) TMI 661 - AT - Central ExciseExcess stock found during stock taking - Confiscation of goods - Imposition of redemption fine - Penalty under Rule 26 - Held that:- Whatsoever method was adopted by the Central Excise officers and as a result variations of stock was found. If the appellant is not satisfied with method of stock taking, they had liberty to dispute method and would have suggested other method of stock taking. However the appellant has not raised any such dispute. Therefore in the facts and circumstances of the case, the excess stock found in the stock verification could not be disputed merely on verbal explanation. The appellant during the seizure of the goods could have represented for re-checking of the stock, which was not opted by the appellant. - excess stock was lying admittedly in the factory and was not cleared from the factory, therefore confirmation of demand and consequential penalty under Section 11AC is not correct. However the goods are very much liable for excise duty. If the same have already been cleared, the said duty shall stand adjusted towards the duty liability of the said goods and if the goods are still lying in the factory as and when the goods is cleared this duty shall be treated as payment of duty on the clearance of the said goods. As regard the penalty, I observed that excise duty at the time of seizure of the goods was not payable, consequently penalty under Section 11AC also wrongly imposed. However since goods were confiscated and I uphold the confiscation, penalty towards confiscation is imposable. - However, redemption fine and penalty is reduced - Decided partly in favour of assessee.
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