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2017 (2) TMI 717 - HC - Central ExciseClandestine removal - levy of redemption fine in lieu of confiscation - M.S. Ingots - removal of goods without issuance of invoice - imposition of penalty u/r 25 of CEA - Held that: - the appellant cannot wriggle out from under in the guise of trying to assert that there was no intention to evade duty. Though confiscation of the material was not made at the premises of M/s.Sri Krishna Alloys, but made at the premises of the appellant, the appellant being a person holding safe custody of the materials, without there being any valid invoice for receipt of the same as raw material, if wishes to retain the confiscated materials, could redeem the same on payment of fine, as has been ordered. The the appellant having received the materials and stored the same within its factory premises without valid invoice, can be said to be holding the materials in safe custody and, therefore, as held by the Tribunal, would not fall within the four corners of Rule 25 of the CEA read with Section 11AC of the CER - the finding arrived by the Tribunal that penalty is not imposable in view of the fact that the appellant would not fall within any of the four categories enumerated u/r 25 of the CER cannot be said to be erroneous. The factum of non-raising of invoice had come to light only due to the surprise inspection conducted by the Department - There was no revenue loss to the exchequer. However, mere payment of duty before issuance of show cause notice would not preclude the Department, from levying redemption fine, once the factum of evasion of duty is made out, be it mala fide or not. Levy of redemption fine on the goods manufactured by M/s.Sri Krishna Alloys for being used as raw materials at the hands of the appellant, could not be termed as erroneous or an unjustified act. Appeal dismissed - decided against appellant.
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