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Salasar Steel and Power Limited Versus C.C.E., Bilaspur

2016 (9) TMI 890 - CESTAT NEW DELHI

Confiscation and imposition of penalty - excess found goods as also the Indian currency recovered from the residential premises of the General Manager - Held that:- it is found that the law as regards confiscation of excess stock of goods almost stands settled. The same cannot be confiscated on the mere conclusion of non-entry of goods in the statutory documents, unless there is evidence that such stock was not entered in RG-1 register either deliberately or on the mala fide intention to remove .....

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om the residential premises of the son of General Manager. In spite of the fact that no notice was issued to the person from whose possession the currency was seized, to confiscate the currency on the assumption that the same represents the sale proceeds of the goods cleared and sold by the manufacturing unit without there being any evidence to that effect and without there being any duty demand in respect of such clandestinely removed goods is neither proper nor justifiable. It is well settled .....

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tion of penalty upon the appellant by the authorities below, are set aside. - Decided in favour of appellant with consequential relief - Central Excise Appeal No.52268 of 2016 -SM - Final Order No. 53627/2016 - Dated:- 16-9-2016 - Hon ble Mrs. Archana Wadhwa, Judicial Member Ms. Suarbhi , Advocate for the appellants Shri Dharam Singh, A.R. for the Respondent/Revenue ORDER Per Archana Wadhwa As per facts on record, the appellant is engaged in the manufacture of sponge iron falling under Chapter 7 .....

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ly removed and as such , have not been entered in the record, the same were seized by the officers. 3. Simultaneously, residential premises of Shri Praksh Chandra Mundra, General Manager were also put to search. During search of residential premises, cash amount of ₹ 4.95 lakhs along with one laptop, two pen drives , a cash book and note book were also recovered. Proceedings were recorded in panchnama dated 2.9.2013 and the recovered cash was seized on the belief that the same was sale pro .....

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d imposition of penalty. 5. During adjudication, the appellant took categorical stand that the stock was not actually measured and it is impossible to weigh the stock during short period of visit by the officers, that the measurement report does not bear signature of panchas and the departmental officers and as such, the conclusion of the excess weighed is not correct. The goods are stored in heaps which are in conical shape and not of cubic shape and as such, the stock of the said goods in heap .....

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goods on the mid-night of 2.9.2013 which factor has not been taken into account. The day s production was also not considered and as such, the excess has been incorrectly arrived at. They further submitted that there is no statement of any authorized person to the effect that such excess quantity of the final product was not entered in the record with any mala fide on the part of the assessee so as to clear the same without payment of duty. As regards the seizure of cash, the appellant conteste .....

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favour with the above submission of the appellant and confiscated 286.235 MT of sponge iron totally valued at ₹ 47,80,128/- with an option to the appellant to redeem the same on payment of redemption fine of ₹ 12 lakhs. The cash amount of ₹ 4.95 lakhs was also confiscated absolutely under the provision of Section 121 of the Customs Act, 1962 read with Notification No.68/63 dated 4.5.63. In addition , the penalty of ₹ 5 lakhs was imposed upon the appellant under Rule 25 o .....

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eneral Manager as also to imposition of penalty. As regards the confiscation of excess found goods, I find that the appellants have at the first instance challenged the correctness of the said excess found goods and the method adopted by the visiting officers for arriving at the conclusion of excess goods, the ld. Advocate has drawn my attention to the relied upon documents where no sign of panchas appears. 8. I find that the law as regards confiscation of excess stock of goods almost stands set .....

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ecord to show that such excess found stock was meant for clandestinely removal, in which case, action against the assessee was not appropriate. For arriving at the above conclusion , the appellant relied upon the earlier decision of the Tribunal in the case of C.C.E. Raipur vs. Devi Iron & Power Pvt. Ltd. - 2015 (321) ELT 270 (Tri- Del.) as also in the case of Morakhia Metals & Alloys Pvt. Ltd. vs. C.C.E.& S.T., Allahabad III 2015 (330) ELT 325 (Tri-Ahmd.); C.C.E., Jaipur vs. Karnawa .....

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ot done in proper manner was also one of the reason for the Tribunal to arrive at this finding. In the case of Industrial Thermopack vs. C.C.E., Delhi IV 2015 (329) ELT 500 it was held that non-accountal of goods by itself cannot lead to the confiscation of the goods, in the absence of any corroborative evidence produced to establish intent of the appellant to remove goods clandestinely. To the similar effect is another decision of the Tribunal in the cases of C.C.E., Siliguri vs. Asha Ispat (P) .....

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