2003 (10) TMI 506 - AT - Central Excise

Summary

Issues: Imposition of penalty and confiscation of goods

In this case, the Appellate Tribunal CESTAT, NEW DELHI heard an appeal regarding the imposition of a penalty and confiscation of Sodium Tripoly Phosphate and glycerin against M/s. Chandan Chemicals. The Appellant argued that they are a registered dealer under the Central Excise Rules and had received a consignment of Sodium Tripoly Phosphate which they intended to sell in retail on non-modvatable invoices. They contended that as per Circular No. 96/7/95-CX, they were not required to enter this consignment in their RG 23D Register since they did not intend to issue modvatable invoices. On the other hand, the Departmental Representative argued that the goods were not accounted for as required under Rules 52AA and 57AE(3) of the Central Excise Rules, 1944.

The Tribunal considered the submissions of both parties and referred to the Circular dated 13-2-95, which allowed registered persons not to enter details of consignments for which modvatable invoices were not intended to be issued into the RG 23D Register. Since the impugned goods were not meant to be sold with modvatable invoices, the Tribunal held that there was no obligation for the Appellants to enter them into their RG 23D register. Consequently, the Tribunal set aside the previous order, allowing the appeal with consequential relief.