Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2005 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (12) TMI 333 - AT - Central ExciseConfiscation of the finished goods and raw material - Penalty - Non-accountal of finished goods - HELD THAT:- In respect of the finished goods I find that the appellants have been continuously taking a plea before the lower authorities that these goods were not yet completely finished and goods still have to attain the RG-1 stage. The appellants have also been continuously taking a plea that there was no intention to remove the goods but it was an error on their part of not entering into the statutory record. This in my opinion may be correct, given the fact that the quantity of finished goods were not that very high. The show cause notice issued to the appellants in the present case that there is no allegation to remove the goods from the factory without payment of duty. In the absence of any such allegation in the show cause notice it cannot be considered or presume that the appellants had intention to remove the goods without payment of duty. In respect of raw material found in the appellants’ factory there is no allegation in the show cause notice that these goods were, in fact, produced or manufactured by the appellants. The goods which were found were granules which are used as inputs by the appellants for manufacturing planks, drums in their factory. Since these are inputs the question of their confiscation does not arise as held in the case of CCE, Indore v. Avanti LPG India Ltd.[2003 (12) TMI 147 - CESTAT, NEW DELHI]. Thus, the confiscation of the finished goods and the raw material is not in connoscence with law and the same is set aside. Penalty imposed on the appellants under Rule 25 is also not warranted and the same is also set aside. But at the same time I find that the appellants have violated the provisions of Rule 10 of the Central Excise Rules, 2002 for which they are liable to be penalized under Rule 27. A penalty of Rs. 2000/- on the appellants under Rule 27 is imposed for violation of the Rules. Appeal is disposed of in above terms.
|