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2015 (9) TMI 1377 - AT - Central ExciseRemoval/ Shifting of goods from the old factory to the proposed factory (adjacent premises) without payment of duty - Confiscation of goods - Held that:- Technically there are some procedural irregularities committed by the appellants. However, the fact remains that the appellants themselves informed about the shifting of the raw materials, etc. within five days of the shifting, applied for registration within the next two days and they have sufficient balance in the Modvat credit/PLA account to take care of the liability while shifting the goods. Moreover, immediately on shifting the goods, the same account would be available as credit of duty in the adjacent premises. Thus, though technically the confiscation of the goods is in order. However, keeping in view of overall circumstances, we do not see any reason to impose redemption fine of ₹ 42 lakhs. In our view ends of justice will meet if the redemption fine of ₹ 50,000/- (Rupees fifty thousand) is imposed. Further, we find that whatever demand has been made could have been paid from the Central credit account/PLA and further the same was available as credit on the same date in the adjacent premises. Further, the revenue themselves have allowed the shifting of the accumulated PLA balance as well as Modvat credit was allowed based upon the appellants request letter dated 11/03/2011. Keeping in view the overall circumstances of the case, in our view there is no need to demand the duty. Finished goods were cleared on payment of duty from new premises. Work-in-progress goods were converted into finished goods and cleared on payment of duty. Keeping in view the peculiar circumstances of the present case, we therefore, set aside the demands made. - Decided in favour of assessee.
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