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2023 (2) TMI 604 - AT - Central ExciseDenial of remission claim on goods lost (stolen) - Cigarettes - denial on the ground that this is a case of clandestine removal and not of burglary - demand of duty raised against the appellant company - imposition of penalty on the Director - HELD THAT:- The allegation of clandestine removal against the appellant is not established. It is evident on the face of the record that the appellant have taken all steps as a person of ordinary prudence, to cooperate with the Department and have taken effective steps for getting the FIR registered and have pleaded before the Police Department repeatedly including the higher officers to investigate the matter. This is also corroborated by the fact that the appellant suo moto appeared before the Court of Judicial Magistrate in complaint case No.1 of 2010 of P.S. Kotwali, Bhopal and they also pleaded to give directions to the Police to investigate. Thus, no case of clandestine removal is made out. The appellant is liable to pay duty only for the proportionate goods finally lost and is not liable to duty on the 25 CFC cartons of cigarettes recovered by the Police. The appellant is liable for duty only on the balance quantity of cigarettes being 138 CFC cigarettes. Further, penalty imposed under Rule 25 read with Section 11 AC on the appellant company and on the Director under Rule 26 of Central Excise Rules are set aside. Appeal allowed.
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