2002 (9) TMI 717 - AT - Central Excise

Summary

Issues:
- Adjudication order passed by the Commissioner of Central Excise
- Confiscation of goods found in excess
- Demand of duty for branded goods
- Imposition of penalty
- Benefit of small scale exemption notification
- Modvat credit for inputs
- Abatement of duty for calculating assessable value
- Verification of goods cleared with brand name 'OPEX'
- Redemption fine reduction

Adjudication Order:
The appellants filed an appeal against the adjudication order passed by the Commissioner of Central Excise. During a visit to the appellants' unit, officers found an excess of crankshafts and diesel engine sets compared to the recorded balance in their register. The goods were confiscated, and duty was demanded for branded goods, with a penalty imposed by the adjudicating authority.

Brand Name 'OPEX' and Small Scale Exemption:
The appellants argued that the brand name 'OPEX' was used for goods supplied to a specific company, and they were also clearing goods without this brand name. They contended that they should be eligible for the small scale exemption notification for generating sets. The revenue, however, claimed that since the appellants admitted clearing goods with the 'OPEX' brand, they were not entitled to the exemption.

Modvat Credit and Abatement of Duty:
The appellants sought Modvat credit for inputs used in manufacturing and argued for abatement of duty from the price for calculating the assessable value. They relied on a Supreme Court decision for support.

Verification and Remand:
Regarding the clearance of goods with the brand name 'OPEX,' it was acknowledged that diesel engines were cleared with this brand. However, there was a dispute about generating sets not being cleared with the 'OPEX' brand, requiring further verification. The matter of demanding duty for generating sets was remanded to the adjudicating authority for clarification.

Redemption Fine Reduction:
Considering the circumstances, the Tribunal reduced the redemption fine from Rs. 2.27 lakh to Rs. 75,000, stating that it would meet the ends of justice. The appeal was disposed of accordingly, upholding the rest of the impugned order.

This judgment addressed various issues related to the confiscation of goods, demand of duty for branded goods, small scale exemption, Modvat credit, abatement of duty, verification of goods cleared with a specific brand name, and the reduction of the redemption fine.