2017 (10) TMI 1026

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....al Products were also manufacturing tobacco at their farm house at Khothairya. Accordingly, search was conducted at the premises on 10.12.2007 and the officers seized 118 jute bags containing 350 Kg of manufactured tobacco, and 450 kg of loose tobacco. Further, 50 gute bags of lime tobacco dust weighing 2000 kgs was also found. Upon conclusion of investigation and issue of show cause notice dated 03.06.2008, the original adjudicating authority confirmed the demand of duty amounting to Rs. 4,53,767/- on 1335000 pouches cleared from Bagol factory clandestinely. The seized goods were also confiscated, but allowed for redemption with fine. Penalties were also imposed. The order of the original authority was challenged before the Commissioner (A....

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....ime mixed tobacco was packed using pouch packing machines and cleared with the brand name "Panna". Further, he argued that the clandestine clearance of tobacco to the extent of 8110 kgs as well as 1335000 number of pouches have been admitted by Shri Lakshmilal Chaplot as well as Shri Bhavesh Chaplot in their statements. What has been admitted need not be proved by Revenue. 5. Heard both the sides and perused the record. 6. M/s. Nirmal Products had a registered unit (unit 1) at Bagol Road, Nathdwara. During search proceedings on 10.12.2007, the Department found that lime mixed tobacco was being manufactured in the Khothairya farm house belonging to Shri Lakshmilal Chaplot. 3990 kgs of tobacco found manufactured there were also seized a....

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....cco" and not as preparation containing "chewing tobacco". The factual position also reveals that the appellant have been paying duty on such preparation from unit 1. Hence, we conclude that 3990 kgs of lime mixed tobacco is, liable to payment of excise duty and since the same has been seized in non registered premises, confiscation of the same ordered by the lower authorities is required to be upheld along with option to redemption by payment of redemption fine. 9. Now, we consider the demand of excise duty amounting to Rs. 4,57,367/- on 1335000 pouches cleared from Bagol factory. It stands admitted by the proprietor categorically in his statement that 8110 kgs of lime mixed tobacco were manufactured in unit 2 (farmhouse) and the same wa....