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2009 (12) TMI 417 - CESTAT, AHMEDABADDemand and penalty- The appellants are engaged in manufacture of Reaction Vessels used in chemical industries. A show cause notice was issued to the appellant, which has culminated into the impugned order. In the impugned order, the seized goods i.e. 17,100/- kgs steel coils have been confiscated and ordered to be released on payment of fine of Rs. 1 lakh in lieu of confiscation. Duty of Rs. 6 lakhs paid by the appellant in respect of clearances made on 20-10-06 has been appropriated (total amount paid was more than Rs. 24 lakhs). Further, a penalty of Rs. 6,00,005/- has also been imposed on the Company and a penalty on Shri Rakesh Panchal. Hence, the appeals. Held that- the appellants have contravened the provisions of Rule 25(c) of Central Excise Rules, 2002 when they moved the raw materials to Plot No. 1506 and under-took the manufacturing process and just because the materials have reached the semi-finished stage, they cannot claim that the same cannot be confiscated. Therefore, hold that the confiscation ordered by the lower authorities is in order and is required to be upheld. But take the lenient view about the penalty and fine. Thus, redemption fine is reduced to Rs. 60,000/- and penalty on the director is reduced to Rs. 25,000/-.
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