TaxTMI 
TaxTMI 
2017 (12) TMI 597
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....f redemption fine is tenable in the facts and circumstances of the case. 2. The brief facts are that the appellants are engaged in the manufacture of H.R. Strips falling under Chapter 72 of the Central Excise Tariff Act. The Central Excise Preventive Officers, Raipur visited the factory premises on 24.12.2011 and asked to Shri P.G. Saha, Site Incharge and authorized signatory for stock declaration. Shri P.G. Saha vide letter dated 24.12.2011 declared the stock position of raw material and finished goods as on 24.12.2011. In order to ascertain the correctness of stock, the officers conducted the physical verification of the stock of both the finished goods and the raw material lying the factory premises in the presence of Shri P.G. Saha Sit....
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....posed confiscation of 24.454 MT of billets valued at Rs. 7,75,192/- and 33.027 MT of HR strips valued at Rs. 11,88,972/- seized on the date of inspection with an option to redeem on payment of fine of Rs. 4,91,041/-. Further, penalty of Rs. Two lakh was imposed under Rule 25 of Central Excise Rules, 2002. 4. Being aggrieved, the appellant preferred appeal before learned Commissioner (Appeals). 5. The learned Commissioner (Appeals) have observed the modus operandi of the appellant as regards the receipt and issue of raw material, recording of production and removal of finished goods as under: - i) The purchased quantity received in the factory are recorded on actual weighment basis. ii) The raw material is issued for production from Form....
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....le in the factory premises but the visiting officers did not utilised the said facility and conducted the stock taking on eye estimation basis. The appellant admitted that mere excess in the quantity of finished goods and raw material does not call for confiscation and imposition of penalty. It was further observed that raw material / finished goods cannot be confiscated which is not properly accounted for. Accordingly, he held that confiscation of 24.454 MT of billets under Rule 25 is not - tenable and accordingly set aside. He have held that confiscation of the finished goods which were released on payment of redemption fine of Rs.one lakh. Further, penalty under Rule 25 was reduced Rs. 50,000/-. 7. Being aggrieved, the appellant-assesse....