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TMI Blog2008 (9) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order]. M/s. Sri Arvind Fabrics Mills (Appellants in Appeal No. E/753/2005) are engaged in the manufacture of cotton grey fabrics. The lower authorities found that, on 10-1-2004, the appellants had kept a quantity of 64,862 metres of cotton fabrics without accountal in any register and, therefore, the said quantity of goods was liable to confiscation under Rule 25 of the Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual amount of penalty was also imposed on the party under Section 11AC of the Central Excise Act read with Rules 25 and 26 of the Central Excise Rules, 2002. Further, the vehicle from which the aforesaid quantity of 10,682 metres of cotton fabrics was seized was also confiscated with a redemption fine of Rs. 40,000/-. This vehicle belonged to Shri K. Selvaraj, the appellant in Appeal No. E/752/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nfiscation. Undisputedly, any goods clandestinely removed from factory without payment of duty is also liable to confiscation under the same provision. Therefore, the confiscation ordered by the lower authorities in respect of the cotton fabrics cannot be faulted. The learned consultant has also raised a grievance against the quantum of fine imposed in lieu of confiscation. This grievance is in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicating authority. This discretion, however, is not unfettered. It has got to be exercised in accordance with sound judicial principles. The question now arising is whether the authorities below have acted in such manner while determining the quantum of fine. After considering the submissions of the learned consultant and the learned SDR, I am of the view that the fine was determined in a mechani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i K. Selvaraj is set aside. 3. The finding of clandestine removal of excisable goods having been sustained, I must also sustain the penalty equal to duty imposed on the party under Section 11AC and it is ordered accordingly. 4. Both the appeals are disposed of in the above terms, with consequential relief if any. (Dictated and pronounced in open court) - - TaxTMI - TMITax - Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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