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2016 (1) TMI 840 - AT - Central ExciseRedemption fine along with penalties - clandestine removal - non-duty paid stock - Held that:- As out of total seized goods of ₹ 73,28,787/-, the learned Commissioner (Appeals) held that goods amounting to ₹ 18,27,926/- is liable for confiscation on the ground that M/s. Metro was not able to show the invoices for the same. The appellant has contended that they are receiving wire and cables of spools and selling the wire and cables after cutting the size according to the requirements of various customers. For selling the wires and cables on spools in length, there is difference in length which is a trade practice and difference in stock works out to 2% of the total purchases made by M/s. Metro. This contention has not been controverted by the Revenue with cogent reasons. Moreover, the Revenue has also failed to come to a concrete conclusion that if the goods have not been transferred from M/s. Pymen Cables as the charge of clandestine removal against M/s. Pymen Cable has been set aside, then from where, Metro procured such wire and cables. In these circumstances, the contention of M/s. Metro is acceptable that there is marginal difference of 2% of stock in excess is due to excess length of wire and cables on spool being a trade practice. As they are receiving wire and cable of spools and on having spools on wires and cables on extra length. In these circumstances, the excess stock of ₹ 18,27,926/- is not liable for confiscation. Consequently, the redemption fine on M/s. Metro is set aside. As the charge against M/s. Metro has been set aside and no penalty has been imposed on M/s. Metro by the authorities below, in these circumstances, the penalty on Shri Sandeep Garg director of M/s. Metro is also not imposable under Rule 26 of Central Excise Rules, 2002. Therefore, the penalty imposed on Shri Sandeep Garg is also set aside. - Decided in favour of assessee.
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