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TMI Blog2017 (10) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... lime mixed tobacco were manufactured in unit 2 (farmhouse) and the same was cleared to unit 1 and subsequently packed in 1335000 pouches each of 6 gms at Bagol factory and the same was cleared without payment of duty. Such demand have been upheld on the basis of the inculpatory statement by both Shri Lakshmilal Chaplot as well as Shri Bhavesh Chaplot. The demand of duty raised is liable to be upheld along with interest as well as penalty of equal amount under section 11AC. The imposition of personal penalty of ₹ 10000-/- on Shri Bhavesh Chaplot is also required to be upheld under Rule 26 of the Central Excise Rules 2002. Appeal dismissed - decided against appellant. - E/3130-3131/2010-EX[DB] - FINAL ORDER No.55979-55980/2017 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the respondent. 3. The Ld. Counsel for the appellant emphasized the following arguments of appellant: i) 3990 kgs tobacco seized in the farm house (unit 2) is not liable for confiscation since the same is not marketable and is unfit for human consumption. ii) Goods seized at unit 2 as well as goods claimed to have been manufactured and cleared in unit 2 are not liable to payment of duty since they are covered by the SSI notification no. 8/2003 dated 01.03.2003 as well as the benefit of AED exemption notification no. 09/1996 dated 26.07.1996. The benefit of this notification will be available since the tobacco manufactured in unit 2 is branded. There is no evidence for the manufacture of 8010 kgs of lime mixed tobacco. Likewise n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransferred to unit 1 for packing using pouch packing machines, before clearing the same for home consumption. It has further been admitted in the statement that 12000 kgs of lime mixed chewing tobacco has been manufactured in unit 2 in the last two years out of which 3990 kgs was lying in unit 2 and the rest 8110 kgs had been cleared to unit 1 and from their cleared without payment of duty in pouches packed with brand name of Panna . In view of the statement as above, which have not been retracted at any stage, we are of the view that 3990 kgs of lime mixed tobacco will not be eligible for the benefit of SSI exemption notification under 08/2003 and also the AED exemption notification no. 09/1996 dated 23.07.1996. 7. It has been argued t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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