2007 (7) TMI 516 - AT - Central Excise

Summary

Issues Involved:
- Alleged contravention of provisions of Rule 173QG(4) u/s Rules 53 and 226 of Central Excise Rules, 1944
- Confiscation of goods and imposition of penalty

On the issue of alleged contravention of provisions of Rule 173QG(4) u/s Rules 53 and 226 of Central Excise Rules, 1944, the appellant was issued a show cause notice for failing to maintain statutory records for production of goods, specifically Redrawn Brass Tube and redrawn copper tubes. The notice alleged an offence under Rule 173Q of Central Excise Rules, 1944 and confirmed a duty amount. Upon adjudication, the goods were ordered to be confiscated with a redemption fine imposed. The appellant contended that there was no mens rea for the removal of goods without payment of excise duty. The learned Counsel argued that the absence of entry in the RG-1 register was due to a lapse on the part of the clerk. Citing previous Tribunal decisions, the appellant pleaded for setting aside the redemption fine and penalty imposed.

Regarding the confiscation of goods and imposition of penalty, the learned DR supported the impugned order and relied on Tribunal decisions in similar cases. However, the Tribunal found that mens rea was not established in the case, leading to the setting aside of the impugned order and allowing the appeal with consequential relief. Despite this, a penalty of Rs. 2,000 under Rule 226 of the Central Excise Rules was confirmed for the non-entry of goods in the RG-1 register. The Tribunal emphasized that the principles laid down by the Division Bench outweighed the decisions of Single Members, citing relevant legal precedents to support their decision.