9911796707
TMI Blog2008 (9) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... er]. - The appellants are engaged in the manufacture of textile articles including 'baby receiving blankets.' They have two units viz. Units I and II, which are covered by common Central Excise registration. Prior to 13-5-2003, these units were 100% EOUs covered by common registration. When the EOUs were de-bonded under Final Exit Order dated 13-5-2003 of the Development Commissioner, there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llants under the same Rule. Hence the present appeal. 2. After hearing both sides and considering their submissions, I find that, admittedly, the above fabrics were in semi-finished condition and were not fit for removal as final product (baby receiving blankets). Rule 25, invoked by the Commissioner, reads as under :- RULE 25. Confiscation and penalty. - (1) Subject to the provisions of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scation and the producer or manufacturer or registered person of the warehouse or a registered dealer, as the case may be, shall be liable to a penalty not exceeding the duty on the excisable goods in respect of which any contravention or the nature referred to in clause (a) or clause (b) or clause (c) or clause (d) has been committed, or rupees two thousand, whichever is greater. 2. An orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Rules, 2002 with intent to evade payment of duty. In these circumstances, clauses (c) and (d) of sub-rule (1) were also not applicable. The entire rule stood inapplicable to the case. Hence the confiscation ordered and penalty imposed under Rule 25 have only to be set aside. Accordingly, the impugned order is set aside and this appeal is allowed. (Dictated and pronounced in open cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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