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2017 (12) TMI 218 - AT - Central ExciseNon-maintenance of statutory records in respect of availability of the said goods in the factory premises - confiscation u/r 25 of CER - Held that: - Since, Rule 25 ibid has been invoked for confiscation of the seized goods and for imposition of penalty on the appellant, it is to be ascertained, whether the said statutory provisions are applicable under the facts and circumstances of the case for confiscation of the said seized goods. On perusal of Rule 25 ibid, it reveals that raw material is neither covered in clause (a) (b) and (c) of sub-rule (1) of Rule 25 and also not appearing in clause (d) of the said sub-rule. Since Rule 25 only deals with the excisable goods manufactured by the person and admittedly other than chewing tobacco, the appellants are not manufacturing any other products in their factory, excepting chewing tobacco i.e. finished product of the appellant, other goods cannot be confiscated under Rule 25 ibid. Out of 8 items seized and confiscated by the department, only the finished product viz. chewing tobacco of “Panna” brand valued at ₹ 3,94,400/- is liable for confiscation and redemption fine can be imposed for redeeming the said goods only. Since, the option was given to the appellant to redeem all the seized goods on payment of redemption fine of ₹ 2,50,000/-, redemption fine can be reduced to Rs. One lakh. Penalty u/r 26 imposed on Shri Bhavesh Chaplot, the authorized signatory of M/s Nirmal Products - Held that: - penalty cannot be imposed under Rule 26 ibid on the ground that the goods were not removed outside the factory premises in clandestine manner and also for non maintenance of proper records, the main appellants have already been penalized under Rule 25 ibid - penalty set aside. Appeal allowed in part.
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