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TMI Blog2018 (8) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... materials PVC Scrap amounting ₹ 1,00,000/- cannot be confiscated without issuance of the show cause notice - Confiscation of the said goods is bad in law. With regard to seizure of goods in the case of M/s Shree Ganesh Udyog, the goods seized are Kalinga brand wire & Cables to the tune of ₹ 19,39,910/-, plastic granules amounting to ₹ 1,31,200/- and Calcium Carbonate CPW & Resin amounting to ₹ 3,36,250/-, Calcium Carbonate CPW & Resin are the raw materials and same cannot be confiscated under Rule 25 of the Central Excise Rules, 2002. With regard to plastic granules, it is not the case of the Revenue that the appellant are manufacturing branded goods of third party. As the appellant are only manufacturing plast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fine and penalty. Certain penalties on the co-appellants were also imposed. Demand of excise duty was also confirmed against the appellant. 2. Brief facts of the case are that an investigation was conducted on 07.04.2011 at the factory premises of M/s Shree Ganesh Udyog and M/s Shree Ganesh Industries. During the course of search, certain goods namely raw material i.e. resin, finished goods namely plastic granules, PVC Pipes, Wires and Cables were found which were seized under panchnama and various statements were recorded. On the basis of the statements and panchnama, a show cause notice was issued to the appellants to confiscate the seized goods and to impose redemption fine and penalties on the appellants. The said show cause notice w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- Scrap 4. It is the contention that the goods which were seized in the factory premises of M/s Shree Ganesh Industries, C-283, Sector -5, Bawana Industrial Area, New Delhi, but the panchnama shows that the said address pertains to M/s Shree Ganesh Udyog which is incorrect. He further submits that in the show cause notice, the items mentioned at column 5 were not called to show cause notice to be release after confiscation and on payment of redemption fine. In fact, the items mentioned at Sl. No. 6 which were seized in the factory premises of M/s Kalinga Cables Pipes, E-648, DSIDC Industrial Area, Narela, Delhi were proposed to confiscate and to be release on payment of redemption fine and penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir factory and duty is payable at the time of clearance of goods, therefore, as goods have not been cleared by the appellant, no duty cannot be demanded from the appellant. Therefore, demand of duty is required to be set aside. 6. On the other hand, ld. AR opposed the contention of the ld. Advocate for the appellant and submits that merely for typographical error, in name of the appellant, the appellant cannot be absolve from their liability. As the machinery available in the factory of the appellant was manufacturing branded goods in the brand name of third party. Therefore, they are not eligible to avail the benefit under Notification No. 8/2003-CE dated 01.03.2003. As the appellant has not registered with the Central Excise Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and PVC Pipes and Cables amounting to ₹ 20,15,710/-. Calcium Carbonate CPW, Resin amounting ₹ 9,61,200/- and PVC Granules and Packing materials PVC Scrap amounting ₹ 1,00,000/- whereas as per paragraph 12 of the show cause notice the appellant were called to show cause why the seized finished goods having MRP valued at ₹ 28,02,315/- should not be confiscated under Rule 25 of the Central Excise Rules, 2002. Admittedly, the show cause notice issued for the finished goods having MRP but the seized goods are not the said goods for which the show cause notice has been issued to the appellant. In that circumstances, the finished goods in the brand name of Kalinga brand PVC Pipes and Cables of ₹ 20,15,710/-, Calcium C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of third party. As the appellant are only manufacturing plastic granules and enjoying the benefit of SSI exemption under Notification No. 8/2003-CE dated 01.03.2003. Further, the Revenue has not come with any evidence that the appellant is not entitled for the said exemption for manufacturing of plastic granules in their factory. Therefore, the said finished goods are not liable for confiscation. In that circumstances, goods seized in the factory of M/s Shree Ganesh Udyog are not liable for confiscation. Consequently, the redemption fine and penalties imposed on M/s Shree Ganesh Udyog is set aside and penalty imposed on Shri Anil Kapoor, Partner is also set aside. 10. It is also observed that some wires and cables having (MRP) to the tu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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