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2018 (7) TMI 164 - AT - Central ExciseConfiscation of raw material, packing material and finished goods - Redemption fine - case of appellant is that Rule 25 of Central Excise Rules under which these goods have been confiscated is meant only for finished goods - Clandestine manufacture and removal - paints and varnishes - Held that:- It is admitted fact that no Cenvat credit has been taken by the appellant. In that situation, there is force in the contention of the appellant that there is no provision in the Central Excise Act for confiscation of such raw material and packing material - also, the first appellate authority in para 10 of the impugned order has failed to give any cogent basis for confiscation of raw material and packing material - the confiscation of the raw material and packing material is without authority of law and is accordingly set aside. Confiscation of inished goods, which were found in the premises - Held that:- It is not disputed that the appellant were maintaining kachcha parchis for clandestine removal of the goods. The appellant had already crossed turnover limit of SSI exemption - the appellant had been systematically clearing the goods without payment of duty in clandestine manner. In these circumstances, reasonable conclusion is that the appellant wanted to remove finished goods in clandestine manner in active connivance with his close relatives as they had already crossed SSI exemption limit - confiscation of finished goods and redemption fine thereupon upheld. The appellant are only contesting confiscation of raw material, packing material and finished goods and imposition redemption fine. It clearly shows that the appellant have accepted that there was clandestine removal of the goods and there was malafide intent to evade payment of duty. Appeal allowed in part.
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