2007 (5) TMI 456 - AT - Central Excise

Summary

Issues involved: Appeal against order of Commissioner (Appeals) upholding original authority's decision on confiscation and penalty for unaccounted goods found at appellant's premises.

Facts:
- Officers found unaccounted items like copper scrap and aluminum scrap at appellant's premises.
- Appellant claimed goods were intermediate products, not meant for clandestine removal.
- Original authority confiscated goods and imposed fine and penalty.
- Commissioner (Appeals) upheld original authority's decision.

Appellant's Arguments:
- Goods were intermediate products, not yet weighed or entered in records.
- No allegation of clandestine removal; goods meant for export.
- Appellant exempt from maintaining certain records as a 100% EOU.
- Relied on Tribunal decisions to support their case.

Respondent's Arguments:
- Clearances of copper scrap by appellant noted.
- Goods found were in finished form, should have been accounted for.
- Supported confiscation and penalty.

Decision:
- Goods found unaccounted were different from raw material; not accepted as intermediate products.
- 100% EOU still responsible for maintaining private records.
- Commissioner (Appeals) decision on non-accountal of goods upheld.
- No evidence of clandestine removal; reduced redemption fine and penalty.
- Confiscation upheld, but redemption fine reduced to Rs. 1 lakh and penalty to Rs. 2000.

Conclusion:
- Appeal disposed of with reduced redemption fine and penalty.