2004 (7) TMI 592 - AT - Central Excise

Summary

Issues:
Appeal against penalty and confiscation of goods due to failure to maintain records under SSI exemption.

Analysis:
The judgment pertains to two appeals filed against a common order imposing penalties and ordering confiscation of goods due to the appellants' alleged failure to maintain records. The appellants, a firm and its partner, were penalized Rs. 15,000 and Rs. 10,000 respectively, with the goods subject to a redemption fine of Rs. 75,000. The appellants operated a dyeing unit manufacturing two-wheeler parts, with clearances within the specified limit for Small Scale Industry (SSI) exemption. As per the proviso to non-tariff notification no. 29/98, they were not obligated to maintain records or obtain registration certificates. Therefore, the seizure of goods by the officers was legally questionable since no duty was payable by the appellants. The lack of evidence indicating a breach of the specified limit for confiscation and penalty further weakened the case against the appellants.

The judge, after hearing both parties and reviewing the record, concluded that the appellants were not in violation of any legal requirements regarding record maintenance. The impugned order imposing penalties and ordering confiscation was deemed unjustified. The judgment set aside the Commissioner (Appeals)'s order entirely, thereby accepting the appeals of the appellants. Any consequential relief available under the law was granted to the appellants based on the discussion and findings presented in the judgment. The decision was pronounced in open court, providing a clear resolution to the legal dispute at hand.