2016 (11) TMI 510

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....e manufacture of Zarda under the brand name of "Shiv Data". Their factory was visited by the officers of the Anti Evasion team on the 29.11.2012, who conducted various search and verifications. As a result, the officers found certain goods which were not entered by the appellant in their RG-23 part 1 records. The same were seized along with seizure of certain raw materials and packaging materials collectively valued at 14.63 lakhs approx. 2. Thereafter, the statements of various persons were recorded during the course of investigation. It was also found that the appellant were clearing their final product on payment of duty to their nearby located godown from where the goods were finally sold by them. The said godown was also visited by ....

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....e also confiscated with the option to the appellant to redeem the same on payment of redemption fine of Rs. 90,000/-. Penalty equivalent to duty amount was imposed upon Shri Nawal Kishore, proprietor of the manufacturing unit along with imposition of penalty of Rs. 25,000/on Shri Dinesh Chaurasia, Supervisor of the appellant company under Rule 26 of the Central Excise Rules. 6. The said order of Dy. Commissioner was challenged before Commissioner (A), who upheld the same. Hence the present appeals. 7. After hearing both the side, duly represented by Shri Ayish A Mehrotra, Advocate for the Appellant and Shri S. Nunthuk, DR for the respondent, I find that the final product as also the raw materials including the packaging materials s....

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....enue's case that the said finished goods were in the process of being cleared from the factory without payment of duty. There is nothing on record to show that the same were meant for clandestine removal. At the end as such by extending the benefit of doubt to the appellant, I set aside the confiscation of the same. In as much as the goods were still within the factory premises and there was a doubt about the same having reached the RG-1 stage, confiscation of the same is bad in view of the law laid down by the Tribunal in the case of Kamal Plywood & Allied Industries Pvt. Ltd. vs. CCE Meerut 1996 (82) ELT 323 (Tri) as also in the case of Indra Metal Works Vs. CCE Pune 1999 (108) ELT 745 (Tri). As regards the confiscation of the raw ....

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....of their brand name and an FIR was lodged by them to that effect Based upon the FIR raids were conducted at various places resulting in recovery of spuriously manufactured goods under their brand name. They have drawn my attention to the FIR as also to the result of the raids resulting in seizure of spurious product of their company. As such it is their contention that in the absence of any evidence to show that the goods seized from railway station were actually manufactured by them and were cleared clandestinely, no duty demand can be made against them. 10. I have gone through the FIR lodged by the appellant and the resultant action on the same. The various raids conducted by the officers, based upon the said FIR has resulted in seizur....