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Issues: Violation of rules in accounting goods in production record (RG-1), imposition of penalties, liability to confiscation under Rule 173Q, penalty on individual under Rule 209A
In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue at hand was the violation of rules in accounting goods in the production record RG-1. The appellants admitted that the goods not accounted for in the RG-1 were delivered in containers, which was against the established practice of filling in barrels/tankers, weighing, and then entering the details in the record. The appellants argued that as per Central Board's instruction, the RG-1 stage had not been reached until the goods were filled in containers. However, the tribunal noted that the RG-1 register had a column for entries in unpacked form, and the failure to make these entries amounted to a violation of rules, warranting penalties against the appellants. Regarding the penalties imposed on the assessee, the tribunal found no infirmity in the lower authorities' order and upheld the penalties. However, considering that the goods were within the factory premises, the tribunal ruled that the liability to confiscation under Rule 173Q was not applicable and set it aside. The penalty of Rs. 1 lakh imposed on the assessee was deemed reasonable in the circumstances, but it was noted that the penalty imposed was only Rs. 50,000, which was confirmed by the tribunal. Furthermore, in relation to the penalty on an individual, Shri V.P. Akbari, under Rule 209A, since the liability of confiscation was not upheld, the penalty on the individual was deemed unnecessary and was set aside by the tribunal. Ultimately, the appeals were allowed in the above terms, with the tribunal addressing the issues of rule violation in accounting goods, imposition of penalties, liability to confiscation under Rule 173Q, and the penalty on the individual under Rule 209A in a comprehensive manner to provide a detailed analysis and resolution of the legal matters at hand.
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