2004 (7) TMI 383 - AT - Central Excise

Summary

Issues: Revenue challenge to order-in-appeal reversing confiscation of goods and imposition of fine and penalty on account of non-accountal of finished goods.

Analysis:
1. The appeal was made by the Revenue against the order-in-appeal passed by the Commissioner (Appeals) which reversed the order-in-original of the adjudicating authority. The adjudicating authority had confiscated unaccounted goods and imposed penalties on the respondents for non-accountal of finished goods. The Central Excise officers found unaccounted MS ingots during a visit to the factory premises of the respondents. The adjudicating authority confiscated the unaccounted goods and imposed penalties on the appellants and their Directors. However, the Commissioner (Appeals) observed that the alleged unaccounted goods were duly entered by the respondents in the Form IV register. The Commissioner noted that Rule 25(1)(b) does not specify that accountal should only be accepted if made in the RG-1 register and not in any other record. As the goods were duly entered in the record, the Commissioner concluded that there was no intention to evade duty, especially since the goods were still in the factory premises. The Tribunal found no material evidence to contradict these findings and upheld the validity of the order-in-appeal, dismissing the Revenue's appeal.

2. The Tribunal noted that the Commissioner's decision was based on a thorough examination of the impugned order, show cause notice, and other material on record. The Commissioner's interpretation of Rule 25(1)(b) regarding the accountal of goods was considered reasonable, as there was no specific requirement for entries to be made only in the RG-1 register. Since the goods were recorded in the Form IV register, the Tribunal agreed with the Commissioner that there was no basis to assume an intention to evade duty, especially when the goods were still present on the factory premises. The Tribunal emphasized the importance of supporting evidence in challenging the Commissioner's findings, which the Revenue failed to provide. Therefore, the Tribunal upheld the legality of the Commissioner's order-in-appeal and dismissed the Revenue's appeal challenging the confiscation of goods and imposition of penalties.