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2009 (6) TMI 271 - AT - Central ExciseQuantum of penalty and confiscation - Central Excise officers visited the respondents’ factory premises and found one parallel challan book. It was also found that challans were issued for clearance of the goods without payment of duty - Thus, it is a case of clandestine removal of goods. - Hon’ble Delhi High Court in the case of K.P. Pouches (P) Ltd. v. UOI and Anrs. – [2008 - TMI - 30328 - HIGH COURT OF DELHI] held that in terms of 1st proviso to Section 11AC where entire duty is paid before issuance of show cause notice, the adjudicating authority should specifically give an option to the party to pay 25% of the duty as penalty within 30 days. In the present case, it is clearly evident that the goods are cleared clandestinely and, therefore, penalty under Section 11AC of the Act is warranted. It is noted that the respondents have already deposited the duty along with penalty of 25% of duty amount as penalty. In view of the decision of the Hon’ble Delhi High Court in the case of K.P. Pouches (P) Ltd. penalty of 25% of duty is warranted. – Raw materials confiscated under rule 25 of Central Excise Rules, 2002 - Regarding confiscation of the raw material the learned Advocate submits that they have not availed any benefit on the seized raw material - We agree with the learned Advocate that Rule 25, under which the semi-finished processed goods has been confiscated is applicable only to finished excisable goods. As such, Hence, Commissioner (Appeals) rightly set aside confiscation of goods.
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