2013 (11) TMI 1151

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....ORDER These applications filed by the appellants seek waiver and stay against the respective dues adjudged against them. The appellant-company is aggrieved by demand of duty of Rs.2,89,650/- and denial of CENVAT credit of Rs.36,014/- besides equal amounts of penalties. The other appellant is the Managing Director of the company and is aggrieved by a penalty of Rs.50,000/- imposed on him. After pe....

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....ffect. 2. Prima facie, the law obligating the manufacturer to pay duty of excise on finished goods removed from the factory and to reverse CENVAT credit on inputs removed as such from the factory is mandatory. If the manufacturer wanted to remove any goods for the purpose of storage outside the factory premises, the law enabled him to do so but with prior permission from the jurisdictional Commis....

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....xtended to the penalties. In this scenario, the learned counsel has referred to the market value of the goods confiscated and submits that the same would secure all the penalties. But I am not impressed with this submission inasmuch as the departmental custody of the goods stands already recognized as a security for demand of duty and the denial of CENVAT credit. Such custody cannot prima facie be....