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TMI Blog2004 (4) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Central Excise, whereunder 40,168.790 kgs of partially oriented yarn (POY) was confiscated under Rule 25 of the Central Excise Rules, 2002, with an option of redemption, on payment of fine of Rs. 7,50,000/-. Besides a penalty of Rs. 2,50,000/- was imposed on Shri J.V. Mistry, the proprietor. 2. It was alleged that the said stock of P.O.Y. was procured from indigenous sources by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subjected the seized goods to confiscation and penal action. 3. Heard both sides. 4. The short question in this case (even if one were to assume that the seized material is in excess of the stock of raw material declared in the records of the user factory) is as to whether the confiscation under Rule 25 of the Central Excise Rules, 2002 can be justified? Relevant portion of Rule 25(1) is extrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notifications issued under these rules with intent to evade payment of duty, - then, all such goods shall be liable to confiscation and the producer or manufacturer or registered person of the warehouse or a registered dealer, as the case may be, shall be liable to a penalty not exceeding the duty on the excisable goods in respect of which any contravention of the nature referred to in clause ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of P.O.Y. as alleged, even then, Rule 25(1) cannot be applied for confiscating such non-accounted P.O.Y. Notwithstanding this legal position, the Commissioner in his findings has also concluded that, there is a proper accountal of the said quantity. Therefore the order which on one hand says that mere is a proper accountal and at the same time orders confiscation for the reason of non-accountal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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