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TMI Blog2024 (6) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... e same were not carried forward in the Daily Stock Register. On the ground that the goods were kept in such a condition so as to remove the same clandestinely, a Show Cause Notice was issued on 01.07.2010 seeking to know as to why the goods valued at Rs.4,42,108/- should not be confiscated under Rule 25 of Central Excise Rules, 2002. The Show Cause Notice also sought to know as to why penalty should not be imposed on them. 2. After due process, the Adjudicating Authority confiscated the goods and gave them option to redeem the same on payment of redemption fine of Rs.1,10,527/- and also imposed penalty of Rs.45,000/- under Rule 25 of Central Excise Rules, 2002. On appeal, the same was dismissed by the Commissioner(Appeals). Being aggrieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.-All.)] 4. The Ld.AR for the Department submits that the physical stocks were found which were not recorded in the Daily Stock Register. Therefore, he justifies the confiscation of these unaccounted goods. 5. Heard both sides and perused the appeal papers and other documents on record. 6. Admittedly, the Appellant is carrying the job-work for IOCL. They get the bulk lubricant from IOCL and the same are converted into smaller pouches by way of re-packing and re-filling. This activity amounts to manufacture in terms of Section 2(f) of the Central Excise Act 1944. After this, necessary Excise Duty is paid on the small pack being cleared by them. As rightly pointed out by the Ld.Counsel, the work undertaken by the Appellant is not an activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted the net excess at 961 qtls. Therefore, I hold that the whole demand is based on assumption and presumptions and is fit to be set aside. Accordingly, I allow both the appeals and set aside the impugned orders. The appellant shall be entitled to consequential benefits, if any, in accordance with law." 8. In the present case also, it is clear that the bulk quantity has been given to the Appellant by IOCL for conversion into smaller pouches and the appellants are responsible to reconcile and quantity received and despatched and thus account for the entire stock received by them. With the packed pouches still within the premises, it gets clarified that entire proceedings have been initiated on assumptions and presumptions. The ratio laid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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