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2018 (5) TMI 209 - AT - Central ExciseRedemption fine - excess quantity found during the search - Held that: - the Tribunal in the case of Ambey Laboratories vs CCE [2017 (6) TMI 374 - CESTAT NEW DELHI] has held that since the goods remained within the factory there is no justification for seizure and confiscation of such goods - redemption fine set aside. Demand of duty - job-work - yarn was received and was returned in the Hank form - Held that: - the appellant is a job worker. Primary duty payment liability lies with the job worker unless the principal manufacturer was taken over the liability - In the present case, the principal had not taken over the liability, so the appellant is liable to pay the duty liability of ₹ 40,32,222/-. This ground is rejected. Demand - goods sent for job worker - Held that: - In the instant case, the principal has not taken the liability to pay the duty demand so the duty demand lies with the job worker - if the duty demand in the instant case to be paid by job worker and not by the Principal appellant. Hence, the duty demand of ₹ 2,83,421/- is deleted. Clandestine removal - it was alleged that only Challans and internal gate passes were prepared before actually clearing the goods under the Central Excise invoices - Held that: - demand was raised solely on the basis of the statement of Sh. R. B. Shah, Authorized Signatory who, in his statement dated 30.01.1997 admitted that file No. 22 contained various challans showing dispatch of the finished goods and that no Central Excise invoices were for such dispatches made by them and that the said goods were removed by them without payment of Central Excise duty - demand sustained. Demand - shortage of yarn - Held that: - the demand is based merely on assumption basis. When it is so, then the demand is not sustainable. The penalties will be decided accordingly by the Adjudicating Authority in light of above confirmation of the duty. Appeal allowed in part.
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