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TMI Blog2011 (2) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... goods arises and having been discharged by the assessee, the impugned order to that extent is upheld. As regards the redemption fine imposed by the lower authorities on the confiscation of the Sugar and lorries transported the said Sugar, I find that since there was no duty paying documents which accompanied the said consignments, the goods were liable for confiscation - the redemption fine imposed by the adjudicating authority in lieu of Sugar and in lieu of 51 lorries is correct and does not require any interference. As regards the penalty imposed under provisions of Section 11AC-the appellant-company had prepared Delivery Challans of the quantities of the Sugar transported on that day - It is also on record that when the stocks were ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not accompanied with duty paying documents like Central Excise invoices etc. On follow up, it was noticed by the officers that in the statutory records RG-1 Register, the entries were also not made regarding the clearance of 9010 quintals of Sugar. The officers seized the said quantity of Sugar and issues show-cause notices for demand of the duty, confiscation of the goods and imposition of penalties. The appellant-company contested the show-cause notices before the adjudicating authority on the ground that this is "one time error" done by them as there was urgent requirement but they had accounted the same by preparing Delivery challans which would indicate that there is no reason to hold that these goods clandestinely removed goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the books of accounts i.e. after loading the Sugar into wagon. It is his submission that the observations made by the ld. Commissioner(Appeals) as regards the knowledge of the assessee regarding the capacity of different types of wagon is sound in theory, but factually it remains that the Railway authorities would give them the wagons as is available which cannot be predicted and invoices for such quantity that could be loaded into the wagon can be issued. It is his submission that hence initially the Sugar cleared on strength of Delivery challans from the gate passes and subsequently loaded at the Railway wagons. It is his submissions that the amount of duty is always paid at the end of the month i.e. by 5th of the next month. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and there being no dispute as regards the discharge of duty liability on the 9010 quintals of Sugar when the provisional clearances were sought, I hold that the duty liability on the said goods arises and having been discharged by the assessee, the impugned order to that extent is upheld. 8. As regards the redemption fine imposed by the lower authorities on the confiscation of the Sugar and lorries transported the said Sugar, I find that since there was no duty paying documents which accompanied the said consignments, the goods were liable for confiscation. It is also undisputed that the quantity of Sugar which was transported was the only quantity which was found short in the factory premises and the goods were accompanied by Delivery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry of the quantity of Sugar cleared, in the RG-1 Register. In view of this, I hold that the penalty imposed by the adjudicating authority under Rule 25 of the Central Excise Rules, 2002 and upheld by the ld. Commissioner(Appeals) is correct and does not require any interference. 11. As regards the penalty imposed on the individual under Rule 26 of the Central Excise Rules, 2002, I find that there is no reason to visit the said individual with penalty under the said Rule. It is to be noted that the said Sugar had been cleared on the Delivery challans for which duty liability needs to be discharged by 5th of next month. It cannot be said that the individual had belief that the goods are liable for confiscation as it is undisputed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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