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TMI Blog2012 (10) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the appellant to clear the goods clandestine, I am of the view that since there was admittedly non-maintenance of proper records penalty required to be imposed on the appellant - Decided in partly favour of assessee. - E/872/2010-SM(BR) - 1441/2012-SM(BR)(PB) - Dated:- 9-10-2012 - Ms. Archana Wadhwa, J. Shri Prabhat Kumar, Advocate, for the Appellant. Shri G.K. Dixit, DR, for the Respondent. ORDER As per facts on record, the appellant is engaged in the manufacture of branded and unbranded chewing tobacco. Their factory was visited by the Central Excise Officer on 8-2-2008, who conducted various checks and verifications. As a result one of the raw-material i.e. flavour was found short to the extent of 80.77 kg. tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1944. Demand of duty of Rs. 26,263/- was confirmed in respect of shortage of flavour and penalty of Rs. 2000/- was imposed on Shri Jai Kumar Arya, under Rule 26 of the Central Excise Rules, 2002. 4. On appeal against the above order Commissioner (Appeals) upheld the same. However, penalty of Shri Jai Kumar Arya was set aside. Hence the present appeal. 5. I have heard both the sides duly represented by Shri Prabhat Kumar Advocate and Shri G.K. Dixit learned DR. 6. As regards shortages the appellant contention is that no actual weighment was carried out by the officers. As such the said shortages were pseudo and not real. He submits that the appellant require a number of raw materials for manufacture of their final product. When th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same has become unfit for consumption on account of seizure and long storage and as such they are not exercising their option to redeem the same. If that be so, no orders are required to be passed on the confiscation aspect and the consequent payment of duty. The duty is required to be paid only if the appellant exercise their option for redeeming the goods. As regards penalty, the appellant contention is that the their factory was closed on account of festival season of Dussehra and Chhatt and as such the entry could not be made in records. Inasmuch as no duty is required to be paid (on account) of non redemption of goods, the penalty imposed upon them is required to be set aside. I find that the issue of non-account of goods has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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