https://www.taxtmi.com/caselaws?id=279484 Non-accounting of finished goods or scrap does not by itself justify confiscation or penalty under the Central Excise Rules where the material remained within the factory and was intended for recycling. The decisive factor is whether the goods were meant for removal outside the premises; in the absence of any finding of intended illicit removal, the legal basis for confiscation fails. On the facts considered, the scrap was not shown to have been taken outside the factory, so confiscation and the associated penalty were held unsustainable in favour of the assessee. en-us Thu, 25 Aug 2011 00:00:00 +0530 Tue, 19 Mar 2019 15:26:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279484 Non-accounting of finished goods or scrap does not by itself justify confiscation or penalty under the Central Excise Rules where the material remained within the factory and was intended for recycling. The decisive factor is whether the goods were meant for removal outside the premises; in the absence of any finding of intended illicit removal, the legal basis for confiscation fails. On the facts considered, the scrap was not shown to have been taken outside the factory, so confiscation and the associated penalty were held unsustainable in favour of the assessee. Case-Laws Central Excise Thu, 25 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279484