TMI Blog2015 (10) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty without accounting them in their books of accounts. Therefore, I do not agree with the contention of the ld. Commissioner (A) that it is the case of mere non accountal of goods in their statutory records. Considering the conduct of the respondent, I hold that excess stock found during investigation was meant for clandestine clearance without payment of duty. In these circumstances, I hold that goods are liable for confiscation. The same can be redeemed on payment of redemption fine. - total duty component works out to ₹ 1.61 lakhs but redemption fine is imposed to the tune of ₹ 4 lakhs which is excessively very high. Therefore, I reduce the redemption fine to ₹ 50,000/-. As intent of the respondent is very clear, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty. The Show cause notice was adjudicated. Demand on duty of shortage of inputs and excess of finished goods were confirmed along with interest and penalties were imposed on the respondent. In appeal before ld. Commissioner (A), the demand on account of shortage of raw material was confirmed but penalty was dropped for excess of raw material the demand was dropped and a penalty of ₹ 5000/- under Rule 27 of Central Excise Rules, 2002 was confirmed. Revenue is aggrieved from this order and therefore revenue is in appeal. 3. The ld. AR submits that on 15-5-2010 the respondent intimated to the department they are closing their unit and same is closed since 15-5-2010 but when they visited their factory on 6-7-2010 the factory was runni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case the fact that factory was closed on 15-5-2010 was intimated by the respondent to the department is correct. The respondent could not inform to the department when they started production again but at the time of visit on 6-7-2010 the factory was found running which shows that the respondent was involved in the activity of clandestine manufacture of goods and clearing thereof without payment of duty without accounting them in their books of accounts. Therefore, I do not agree with the contention of the ld. Commissioner (A) that it is the case of mere non accountal of goods in their statutory records. Considering the conduct of the respondent, I hold that excess stock found during investigation was meant for clandestine clearance w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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