2004 (2) TMI 601 - AT - Central Excise

Summary

Issues:
- Appeal against redemption fine and penalties for non-accountal of goods
- Application of Rule 25 for confiscation of goods and imposition of penalties
- Non-posting of entries in RG 1 register
- Comparison with precedents like Pepsi Foods v. CCE, Nizam Sugar Factory Ltd. v. CCE, and Kirloskar Brothers Ltd. v. UOI

Analysis:
1. The appellants filed appeals against the order-in-appeal affirming redemption fine and penalties due to non-accountal of goods. The counsel argued that there was no non-accountal as goods were manufactured from duty-paid inputs, with only a delay in posting entries, not justifying Rule 25 application.

2. The JDR supported the order, citing Rule 25's correct application for failure to account for goods. The tribunal noted the appellants' engagement in cotton yarn manufacturing, where excess stock was found during a visit, but the appellants explained it as production from the previous day pending entry.

3. Upon review, the tribunal found the appellants' explanation reasonable. The goods in question were manufactured from accounted inputs, with no attempt to remove them unlawfully. The tribunal emphasized that the delay in entry posting did not warrant Rule 25 application for confiscation and penalties.

4. The case was deemed a simple instance of non-posting entries in the RG 1 register for goods produced before the check. The tribunal referenced the Pepsi Foods case, where a similar situation led to setting aside confiscation and penalties, contrasting it with Nizam Sugar Factory Ltd. and Kirloskar Brothers Ltd. cases, which lacked similar circumstances.

5. Consequently, the tribunal set aside the impugned order, allowing all appeals with any applicable consequential relief. The decision was based on the lack of evidence suggesting unaccounted goods or unlawful removal, aligning with the Pepsi Foods case's principles over the cited precedents.