2007 (3) TMI 463 - AT - Central Excise

Summary

Issues Involved: Challenge to order confiscating 9.978 MT of PMSS and 12 MT of waste and scrap u/s Commissioner (Appeals) decision.

PMSS Confiscation: The Revenue challenged the Commissioner (Appeals) order regarding the confiscation of 9.978 MT of PMSS and 12 MT of waste and scrap. The panchnama did not indicate the manner of determination of the stock of finished goods, which was worked out on an "average" basis by the Excise officer. The stock of plate mill side shearings was quantified based on the number of pieces and lots of varying weights without physical weighing. A 2% variation was noted in the total stock, falling within the prescribed tolerance limit of 3% to 7% u/s I.S. 1852-1985. The Commissioner (Appeals) rightly held that confiscation was not warranted due to the genuine variation within the tolerance limit, and thus, no penalty could be imposed.

Waste and Scrap Confiscation: The determination of the stock of 12 MT of waste and scrap was not specified in the panchnama, and the average method used could lead to variations from the book stock. The Commissioner (Appeals) correctly concluded that confiscation of the waste and scrap was unwarranted, and no penalty should be imposed. The decision was upheld as no error was found in the Commissioner's judgment regarding this item.

Conclusion: The appeal challenging the confiscation of PMSS and waste and scrap was dismissed as the Commissioner (Appeals) decision was deemed appropriate and in accordance with the law. The judgment highlighted the importance of considering tolerance limits and genuine variations in stock determination.