2004 (11) TMI 391 - AT - Central Excise

Confiscation and redemption fine - Non accountal of goods - Penalty - Non accountal of goods

Summary

Issues Involved:
1. Confiscation of excess stock under Rule 57GG of Central Excise Rules, 1944.
2. Imposition of penalty and redemption fine.
3. Discrepancies in the penalty amount reduction.

Analysis:
1. The case involved the confiscation of excess stock of M.S. Rounds and M.S. Angle and Joist, along with shortages in other goods, found during a stock verification by Central Excise officers. The Dy. Commissioner adjudicated the show cause notice, ordering a fine in lieu of confiscation and imposing penalties. On appeal, the Commissioner (Appeals) confirmed the confiscation of seized goods but reduced the redemption fine and penalty amount. The appellants challenged the order, arguing that there was no manifest violation of Rule 57GG, thus questioning the confiscation and penalties imposed.

2. The appellants contended that the Commissioner (Appeals) rectified the adjudicating authority's order beyond the appeal's scope, leading to discrepancies in findings regarding the violation of Rule 57GG and penalty amounts. The Revenue argued that the appellants, as registered dealers, failed to maintain correct records as required under Rule 57GG, justifying the penalties and confiscation of unaccounted goods. The provisional release of seized goods under bond warranted the imposition of a redemption fine, as per a Supreme Court decision.

3. The Tribunal noted the findings of both the adjudicating authority and the Commissioner (Appeals) regarding the liability for confiscation of goods, especially those provisionally released under bond. The Commissioner's decision to uphold the confiscation and imposition of a redemption fine was deemed appropriate, considering the circumstances and legal precedents. The apparent contradiction in penalty reduction amounts was clarified, confirming the correct penalty amount as reduced to Rs. 5,000. Ultimately, the Tribunal rejected the appeal, finding no merit in the appellant's arguments.

This detailed analysis of the judgment highlights the key issues of confiscation, penalties, and discrepancies in penalty reduction amounts, providing a comprehensive understanding of the legal proceedings and decisions involved in the case.