9911796707
TMI Blog2022 (9) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods can be redeemed by the Appellant herein by paying redemption fine of Rs. 15 lakhs and penalty of Rs. 5 lakhs. 2. The facts of the matter in brief are as follows. Acting upon intelligence, Central Excise Officers of Preventive Branch conducted search at the premises of the appellant on 16.7.2013. During physical verification of goods, 44531.50 kgs. of 'Lead Ingots' valued at Rs.56,42,507/- was found un-accounted in the factory premises which, according to the department, were not entered in RG-1 register. The same was seized and thereafter handed over to Shri Mukesh Maheshwari s/o proprietor of the appellant. A show cause notice dated 8.1.2014 (hereinafter referred to as '1st Show cause notice') was issued to the appellant for conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (Appeals) vide impugned order dated 31.3.2021 reversed the order of the adjudicating authority and held the issued involved herein is separate proceedings and the 2nd show cause notice and the order of Commissioner (Appeals) therein had not made any comment on goods seized at factory premises. Accordingly, goods were ordered for confiscation and directed to be released only after payment of redemption fine of Rs. 15 lakhs and penalty of Rs. 5 lakhs by the Appellant. 4. I have heard learned counsel for the appellant and learned Authorised representative for the Revenue and perused the case record including the written submissions/synopsis filed by respective sides. Both the show cause notices were issued on the basis of the sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngots" of 44531.5Kgs was found in excess and value of the same was calculated as to Rs. 56,42,507/-. The detail of stock of various kinds of lead ingots was recorded in the Panchnama. On being asked to produce statutory records related to Lead Ingots and other raw materials, Shri Mukesh Maheshwari could not produce the same. Therefore, on reasonable belief that 44531.5 Kgs of the "Lead Ingots" amounting Rs. 56,42,507/-, was kept unaccounted with the intention to clear the same without payment of duty in violation of the provisions of the Central Excise Rules, 2002. The said stock was seized under the provisions of the Central Excise Act, 1944 and handed over for safe custody to Shri Mukesh Maheshwari. Similarly, officers called the Invoices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-I, Indore for confiscation of the same." 6. A perusal of the 2nd show cause notice as well as the order of the learned Commissioner (Appeals) therein would show that the issue in both 1st and 2nd show cause notices is identical i.e. clandestine removal of goods and both the notices are based on the search conducted on 16.7.2013. It can safely be said that the further investigation as well as the issuance of 2nd show cause notice is the result of seizure of 44531.50 Kgs. of Lead Ingots from the premises of the Appellant on the premise that the appellant is into clandestine removal of the goods. I have seen the order of the learned Commissioner (Appeals) in the 2nd show cause notice in which it has been held that the allegations against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclude the Lead Ingots, which according to revenue must have been produced somewhere between May, 2013 upto the date of search i.e. 16.7.2013 and which is the core issue in the 1st show cause notice herein. 7. I agree with the learned Commissioner that the issue involved herein is whether the goods seized by the department are liable for confiscation under the Act? But then the question would arise on what ground the goods can be confiscated. No material has been produced on record to justify the confiscation. A perusal of the 1st Show cause notice, which is presently in issue, would show that it is based on the statements of Mr. Mukesh Maheshwari as well as the statement dated 23.7.2013 of Shri Shyam Singh Jadon, Excise Assistant of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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