TMI Blog2011 (8) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... not allegation against the respondent that there was any attempt for clandestine removal in this case Regarding confiscation of raw material - under Rule 25, the semi-finished processed goods are not liable to confiscation because Rule 25 is applicable only to the finished excisable goods - Decided in favor of the assessee - E/142/2010 - A/324/2011-WZB/C-IV(SMB)/Mum - Dated:- 3-8-2011 - Shri S.K. Gaule, J. REPRESENTED BY : Shri Sanjay Kalra, JDR, for the Appellant. Shri S.B. Awate, Consultant, for the Respondent. [Order]. Heard both sides. 2. Revenue is in appeal against Order-in-Appeal No. AGS(226) 106/09 dated 26-10-2009 whereby the Commissioner (Appeals) has set aside the lower adjudicating authoritys order barr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalties of Rs. 5000/- each under Rule 27 of Central Excise Rules and Rule 15A of Cenvat Credit Rules, 2004. Hence, the Revenue is in appeal. 4. Learned JDR submitted that the Commissioner (Appeals) has not appreciated the excess of finished goods and raw materials in the factory of the respondent. If the Central Excise officers had not checked the physical stock, they would have cleared the goods without payment of duty. The department is not required to prove the case with mathematical precision and is only required to be established by the preponderance of probability. In support of his contention he placed reliance on the decision of the Hon ble Supreme Court in the case of Commissioner of Customs, Madras v. D. Bhoormull - 1983 (13) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. I have carefully considered the submissions and perused the records. Undisputedly, the excess finished goods and excess raw materials involved in this case, the department could not show any evidence that there was any attempt on the part of the respondent to remove the goods clandestinely. Rule 25 provides confiscation of finished goods, and it is not applicable to raw materials. The excess finished goods were less than their one day s production is also not disputed. First, if the quantity of excess goods is not more one day s production and the fact that the goods were lying in finished goods stock room, it cannot be concluded that the same are meant for clandestine removal and are liable to confiscation under Rule 25 of the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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