2007 (2) TMI 488 - AT - Central Excise

Summary

Issues involved: Confiscation of goods, imposition of penalties for non-maintenance of proper records by the appellant.

Summary:
The judgment by the Appellate Tribunal CESTAT, Ahmedabad involved the confiscation of goods and imposition of penalties on the appellant for not maintaining proper records. The case revolved around the search of godown and factory premises, where ball bearings were found. The Deputy Commissioner had confiscated the goods and imposed fines, which were upheld by the Commissioner (Appeals), leading to the present appeals.

Upon review, it was noted that the appellant, a Small Scale Industry (SSI) unit, had not maintained the required records as per Central Excise regulations. However, it was clarified that no duty was confirmed against the appellant for the goods recovered from the transport premises. The appellant argued that they did maintain private records for sales tax purposes, even though statutory records were not kept. The authorities failed to prove that the appellant had crossed the exemption limit or conducted investigations into total clearances.

Considering the circumstances, the Tribunal found that the confiscation of goods and heavy penalties were not justified. The penalty on the appellant was reduced, and confiscation of goods was set aside. It was deemed that a penalty of Rs. 2000 on the appellant would suffice, and no separate penalty was warranted for the partner. Thus, both appeals were disposed of accordingly.