2004 (7) TMI 479 - AT - Central Excise

Summary

Issues: Appeal against Order-in-Appeal setting aside confiscation and penalty for excess goods found during physical verification.

Paragraph 2: The Revenue filed an appeal against the Order-in-Appeal that set aside the confiscation and penalty for goods found in excess during physical verification. The Commissioner (Appeals) had ruled in favor of the appellant, setting aside the confiscation and penalty.

Paragraph 3: The case involved a manufacturing unit engaged in producing M.S. Bars and M.S. Plates. During a physical verification, an excess stock of M.S. Bars weighing 4.236 M.T. was found, leading to the confiscation of the goods and imposition of a penalty. The Commissioner (Appeals) set aside the confiscation based on the argument that the day's production was not considered.

Paragraph 4: The appellant's appeal was allowed by the Commissioner (Appeals) on the grounds that the day's production was not taken into account during the verification process, leading to the excess stock discrepancy.

Paragraph 5: The Revenue contended that the physical verification was conducted in the presence of the Director, who signed the Panchnama accepting the excess stock of M.S. Bars. The Director admitted the mistake by their labor for the excess stock, and the issue of day's production was not raised during verification.

Paragraph 6: The Tribunal found merit in the Revenue's contention as the Director accepted the excess stock during verification and attributed it to a mistake by their labor. The stock was verified against the recorded balance, confirming the excess. Therefore, the Tribunal set aside the Order-in-Appeal and restored the adjudicating authority's decision, allowing the Revenue's appeal.