2018 (10) TMI 467

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....he appellant removed the quantity of about 3,500 MT of Pig Iron from their factory for the purpose of export through Paradip Port. Such clearance was covered under issue of proper ARE-I document. However, on 21/07/2006, the appellant approached the jurisdictional Assistant Commissioner for permission to divert 2400 MT (out of 3500 MT) from the stock yard of Paradip Port into DTA on payment of Duty. The permission was granted vide the letter of the Assistant Commissioner dated 25/07/2006. The duty payable on such goods was paid vide TR-6 challan dated 27/07/2006. As per the specific instructions of the Jurisdictional Superintendent of Central Excise, the duty paid vide the TR-6 challan was entered in the personal Ledger Account maintained in....

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.... which he demanded Central Excise Duty amounting to Rs. 88,38,167/- along with interest and equal penalty towards one consignment of 2400 MT. He also imposed redemption fine of Rs. 10 lacs in lieu of confiscation. The impugned order has been challenged in the present appeal. 4. The appeal is argued by K. K. Acharya, Ld. Advocate for the appellant and H. S. Abedin, the Ld. DR for the Revenue. 5. The argument advanced on behalf of the appellant is summarized below:- (i) It is submitted that only a total of 2400 MT of Pig Iron was diverted by the appellant for DTA clearance on payment of appropriate duty. Such stock of Pig Iron was diverted after due permission of the Jurisdictional Assistant Commissioner out of the stock of suc....

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....of clearance of 2400 MT of Pig Iron diverted for DTA sale from Paradip Port. 7. Heard both sides and perused the appeal record. 8. As per the facts of the case, it is not disputed that out of normal 3500 MT of Pig Iron cleared to Pradip Port for export, a part consignment of 2400 MT was permitted for diversion to DTA sale on payment of duty. The Railway receipt clearly indicates that transportation of 2400 MT of Pig Iron from Paradip Port to the Dankuni Railway siding. It is also a fact that the appellant has made a credit entry of 2400 MT in their RG-1 Register and have also shown debit of the same quantity vide the two invoices covering 2400 MT. Revenue's view is that the clearance of the goods vide the two invoices are in addition ....