2004 (11) TMI 404 - AT - Central Excise

Summary

Issues:
Challenge to Order-in-Appeal setting aside confiscation and imposing redemption fine, reduction of penalty under Rule 226.

Analysis:
The Revenue challenged the Order-in-Appeal where confiscation and redemption fine were set aside, and penalty was reduced to Rs. 2,000. The main contention was that goods not entered in RG-1 Register were liable for confiscation, citing legal precedents. However, upon review, it was found that the excess goods were still in the testing and packing area, not in the finished room, and had not reached the finishing stage. No discrepancies were found in the records of finished goods or raw materials. The Commissioner (Appeals) correctly determined that non-entry in the RG-1 Register did not justify confiscation, as the goods were not at the finishing stage as per the representative's statement and the absence of vehicles for removal indicated they were still in process.

The learned SDR relied on legal cases like Blue Blends (India) Ltd., LML Ltd., and Supreme Vinyl Films Ltd. to support the confiscation. However, the Tribunal found that these cases were not directly applicable to the current situation due to the specific circumstances and facts presented. The Trade Notice mentioned by the Revenue pertained to finished goods in the finishing room, not goods still in the testing and packing area. As such, the legal precedents cited did not align with the case details and circumstances provided, leading to the conclusion that the impugned order was lawful and justified.

In conclusion, the Tribunal upheld the decision of the Commissioner (Appeals) as there was no illegality found in the impugned order. The appeal by the Revenue was dismissed, affirming the ruling that the goods were not subject to confiscation based on the stage of production and the absence of entry in the RG-1 Register.