2019 (2) TMI 847

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....(AR) ORDER The appellant is a manufacturer of 'Electric Table Fans and Domestic Electric Food Mixer' for exclusive supply to the Tamilnadu Government, under Rate Contract. Show Cause Notice (SCN) dated 29.02.2016 reveals that the appellant had taken on rent a godown located at No. 107/3A1C, M.N. Kuppam, Navammal Kappir Village, Kandamangalam, Villupuram, Tamilnadu-605102 where, the appellant....

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....erwise since the same was manufactured for Tamilnadu Government to be distributed freely as per a scheme of the Government; that the removal of the above goods against the returnable delivery challans was undertaken to facilitate further production at its registered premises, that the contract was for bulk quantity but the supply was effected as per the terms of contract in retail form at each tal....

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....kumar, AC, for the Revenue. I have considered the rival contentions and have gone through the documents placed on record and also the order of this Bench relied upon during the course of arguments. 4.1 The short question is, whether the quantity of redemption fine with equal penalty is justified on the facts and circumstances involved? 4.2 Undisputedly the electric table fans manufactured by....

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.... have been found to be diverted and thereafter to be sold elsewhere. Thus, the only infraction of removal of goods without prior permission, is only a procedural lapse, which cannot take the characteristic of clandestine removal with intent to evade duty especially, when the goods are otherwise non-marketable. By this appeal, the appellant without questioning the legality of demand, has assailed o....