2008 (8) TMI 709

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....fiscated with option to redeem the same on payment of redemption fine of Rs. 50,000/-, and penalty of Rs. 50,000/- was imposed in terms of Rule 25 of the Central Excise Rules, 2002. 2. It may be mentioned here that the goods were provisionally released to the respondent on furnishing bond of Rs. 3,99,514/- being the amount of excise duty chargeable on the goods and bank guarantee of Rs. 1,00,000/- be released at the time of payment of redemption fine. The goods are thus lying with the respondent awaiting result of the present appeal. 3. The respondent, M/s. Kaizen Organics Pvt. Ltd., are engaged in the manufacture of Essential Oil (Dementholised Oil) falling under chapter sub-heading no. 3301.00 of the Central Excise Tariff.....

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.... that a clear case of contravention of Rule 10 of the Central Excise Rules, 2002 is made out and, therefore, learned Commissioner committed error in setting aside the confiscation and imposition of penalty. Learned counsel for the respondent submitted that in the absence of any evidence suggesting clandestine removal of goods and/or intention to evade payment of duty, no case of confiscation of penalty was made out and, therefore, the Commissioner rightly set aside the order of the Assistant Commissioner and no interference is called for with the order-in-appeal at this stage. In support of his contention, he placed reliance on Bhillai Conductors (P) Ltd. v. CCE, Raipur, 2000 (125) E.L.T. 781 (T); and Citizen Extrusion (P) Ltd. v. CCE, Sura....

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....ed under the rules", whereas clause (b) is limited to contravention of Rule 10 which deals with maintaining of daily stock account, that is to say, accountal of the excisable goods in the concerned record, namely, RG-I. That appears to be the reason why in order to attract clause (d) there must be an intention to evade payment of duty while in the case of non-accountal simplicitor clause (b) would get attracted without the element of mens rea i.e. intention to evade payment of duty. 6. It is not in dispute that the goods in question were not shown in RG-23-I. The submission of the learned counsel for the respondent was that clause (b) refers to 'excisable goods' and, therefore, until and unless the goods in question attained the sta....