2010 (8) TMI 215

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....y them. I have accordingly, heard Shri J.S. Negi, SDR appearing for the Revenue. 2. As per facts on record, M/s. Dupont Synthetics is a 100% EOU engaged in the manufacture of Polyester Texturised Yarn and Polyester Twisted Yarn falling under Chapter 54 of the schedule to the Central Excise Tariff Act, 1985. Their factory was visited by the officers on 25-6-2001, who conducted various checks and verifications. As a result, shortage of rejected Twisted Yarn and Texturised Yarn and of Yarn waste was deducted. Shri Subhash R. Agarwal, Director of the appellant unit, in his statement recorded on 25-6-2001 confessed that short found goods stand cleared by them without payment of duty to one Mr. Ahmedbhai K. Noorani against cash basis. ....

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....Rs. 1,69,892/- stands paid on the finished goods, there was no justification of confirmation of duty of Rs. 2,41,247/- on the raw materials. He submits that as per the settled law on the issue in terms of the various pronouncements of the Tribunal, duty on the raw material cannot be confirmed, once duty on the final products stands paid. For the above proposition he has relied upon the following decisions :- (a)  2007 (220) E.L.T. 289 (T) - Vandevi Texturisers Pvt. Ltd. v. CCE (b)  2008 (222) E.L.T. 376 (T) - Sarla Polyester Ltd. v. CCE (c)  2009 (236) E.L.T. 199 = 2008 (87) RLT 31 (CESTAT) - (Tri.) Goyal Industries v. CCE (d)    2009 (235) E.L.T. 116 (T) & 2010 (255) E.L.T. A15 (S.C.) CCE v. Sanjar....

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....ilable for confiscation and as such, no redemption fine could have been imposed. The same stand correctly set-aside by Commissioner (Appeals). They have also placed reliance on the following decisions :- (a)  2000 (115) E.L.T. 278 (S.C.) - Weston Components Ltd. v. CC (b)  2009 (235) E.L.T. 623 (T.-LB) - Shiv Kripa Ispat P. Ltd. v. CCE (c)  2008 (229) E.L.T. 185 (P&H) - CC v. Raja Impex P. Ltd. (d)  2009 (248) E.L.T. 122 (Bom) & 2010 (255) E.L.T. A120 (S.C.) - CC v. Finesse Creations Inc.. 11. I agree with the assessee on the above ground that redemption fine is imposed in lieu of confiscation with an option to the concerned person for getting the goods redeem on payment of fine. It is in the nature ....