Appellate Tribunal reduces redemption fine for Central Excise duty violation

The Appellate Tribunal CEGAT, Madras partially allowed the appeal by reducing the redemption fine imposed on goods from Rs. 3.5 crores to Rs. 1,75,00,000. The appellants, who were unaware of variations and had no mens rea, used the goods captively without paying Central Excise duty. The Collector also found no mens rea on the part of the appellants.

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The Appellate Tribunal CEGAT, Madras imposed a redemption fine of Rs. 3.5 crores on goods worth Rs. 17.25 crores. The appellants were not aware of variations, had no mens rea, and used the goods captively without paying Central Excise duty. The Collector found no mens rea on the part of the appellants. The redemption fine was reduced to Rs. 1,75,00,000, and the appeal was partially allowed. (Case citation: 1996 (9) TMI 378 - CEGAT, MADRAS)

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