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2017 (5) TMI 807 - AT - Central ExciseDiversion of goods for local consumption - Goods cleared under ARE-3 to 100% EOU/SEZ units - non-production of re-warehousing certificates - demand of duty with interest - penalties u/s 11AC read with Rule 25 and 27 - Held that: - Non submission of re-warehousing certificate is an admitted fact as the said re-warehousing certificate has to be on the reverse of the ARE-3 form. This in itself cannot be conclusive of fact that the appellant might have diverted the goods cleared under ARE-3 for local consumption - duty liability with interest upheld since appellant has not produced the re-warehousing certificate within the stipulated time. As regards the penalty of equivalent amount on the appellant under section 11AC of the Central Excise Act, 1944 read with Rule 25 and 27 of the CER 2002, this penalty is unwarranted for the simple reason that the departmental officers were aware that the goods were cleared from the appellant's factory under ARE-3 and CT3. Further certificate from recipient of goods is also categorical that they had received the goods - penalty set aside. Appeal allowed - decided partly in favor of appellant.
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