2017 (3) TMI 62

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....mises of M/s. K.K. Tobacco Company and residence of the other appellant and recovered one diary which they call "Raju Deluxe Register". Further in the factory premises they found 78,300 pouches + 29,952 pouches of Gutkha totally valued at Rs. 16,698/- which were not entered into RG-1 Register. At the residence they found 1100 kg. of Supari, 60 kg of raw tobacco and 8 roils of laminated films rolls i.e. the packing materials totally valued at Rs. 53,460/-. Goods manufactured in the factory which were not entered into RG-1 Register were seized. Raw materials were also seized. Investigations were carried out. On the basis of investigation a show cause notice dated 01.04.2008 was issued calling upon K.K. Tobacco Company to show cause as to why ....

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....e of Rs. 25,000/- (Rupees Twenty Five Thousand only). These goods shall be entered in their records and duty paid at the time of its clearance. (ii) I order for confiscation of 5570 kg of the Gutkha (37,13,333 pouches) involving Central Excise duty of Rs. 6,31,267/- manufactured between 22.05.2007 to 29.05.2007 and removed clandestinely under Rule 25 of the Central Excise Rules, 2002. However, the goods are not available for confiscation I hereby impose a penalty of Rs. 6,31,267/- (Rupees Six Lacs Thirty One Thousand Two Hundred Sixty Seven only) in lieu of confiscation. (iii) I confirm the demand of Central Excise duty of Rs. 16,698/- involved on 1,08,252 pouches of the seized goods and Rs. 6,31,2567/- (Rupees Six Lacs Th....

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....nd not entered into RG-1 Register are not liable for seizure and confiscation. He has further submitted that the amount of Central Excise duty of Rs. 16,698/- involved in 78,300 + 29952 pouches which were found in the factory and seized and confiscated were subsequently cleared on payment of duty. He has further submitted that in respect of raw materials there is no provision in the Central Excise Act to seize and confiscate the same. In respect of 5570 kg. Gutkha alleged to have been manufactured between 22.05.2007 to 29.05.2007, he has argued that there were two machines in the factory and Shri Laxmi Kant Pandey, in his statement dated 17.12.2007 has stated that the speed of packing machine was packing 60 pouches per minute. Learned couns....