TMI Blog2015 (10) TMI 1986X X X X Extracts X X X X X X X X Extracts X X X X ..... ation with penalty u/s 11AC - Amount of redemption fine reduced - Penalty on the partner of the firm reduced - Decided partly in favour of assessee. - APPEAL Nos. E/1666 & 1667/05-Mum - - - Dated:- 2-9-2015 - Mr. P.K. Jain, Member (Technical) And Mr. S.S. Garg, Member (Judicial) Shri A.S. Karle, Consultant : For The Petitioner Shri N.N. Prabhudesai, Superintendent (AR) : For The Respondent ORDER Per: P.K. Jain Brief facts of the case are that the appellant is a manufacturer of aluminium utensils. Aluminium utensils are exempt from payment of duty. For the manufacture of aluminium utensils, they require aluminium circles. The appellant is buying from the market aluminium circles and using the same in the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. Learned counsel for the appellant submitted that the goods aluminium circles are not marketable and hence no duty is chargeable on aluminium circles. The learned counsel also submitted that they have already paid the duty determined by the Commissioner (Appeals). They have also paid the interest as also 25% penalty. He also submitted that though the goods were detained and handed over to them under supratnama and there was no provisional release of the goods. Moreover, redemption fine of ₹ 2 lakhs on an approximate value of ₹ 6 lakhs is on a very high side. He further submitted that the second appellant is the partner in the firm and the unit is a small unit and they are not conversant with the excise procedures and as s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of limitation is invokable inasmuch as the appellant had not taken any registration and had not informed about their activities to the department. Therefore, the duty confirmed, interest leviable and the penalty imposed under Section 11AC are upheld. As far as the redemption fine of ₹ 2 lakhs is concerned, we find that the value of the goods detained was approximately ₹ 6 lakhs only. Moreover, the goods were seized in the factory and were meant for captive consumption only. Even the duty element for the approximately four-year period has been worked out to roughly ₹ 1,28,902/-. Keeping in view these facts, in our view, the redemption fine imposed is on a very high side and we reduce the redemption fine to ₹ 10,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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