2006 (10) TMI 45

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....ctober, 2003 which set aside the order in original that confirmed the demand, confiscated the goods and imposed penalties on the respondents. 2.The Commissioner (Appeals) has set aside the order in original by giving the following findings:- "The appeal is being taken up for final disposal after dispensing with pre-deposit of penalty. On careful consideration of the written and oral submissi....

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.... of preparation for clandestine removal without payment of duty. In this regard, I rely upon the case law Bhilai Conductors (P) Ltd v. CCE, Raipur 2000 (125) E.L.T. 781. Accordingly, I set side the order in so far as it relates to confiscation of the stock of 11,900 kgs of pan masala. In view of the fact that demand/confiscation has been set aside, the penalty imposed under Section 11AC and Rul....

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....es and multiplying the same with the weight indicated on the pouch. 4.The learned Advocate appearing for the appellants submits that on 3-8-99, they had sent retraction of the statement to the Deputy Commissioner of Central Excise in the following words:- "We strongly deny removal of any goods without payment of duty, therefore, payment of Rs. 61,200/- made by us may be treated as payment un....

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....oduce pan masala. Pan masala requires katha, and other essentials to come into existence. From the panchnama, it is not very clear that these materials were found short by the officers. In the absence of any contrary evidence indicating shortage of other ingredients, allegation of clandestine removal based only shortage of one raw material and one packing material, in itself would not be a correct....