2007 (12) TMI 395 - AT - Central Excise

Summary

Issues involved: Confiscation of glass bottles, duty confirmation, personal penalty imposition, confiscation of plants and machinery.

Confiscation of glass bottles: The Commissioner confiscated 44.33 lakhs bottles of glass due to non-entry in RG-1 register, along with an additional duty confirmation of Rs. 1,81,921. Another 1,47,477 bottles were confiscated with a redemption fine and duty amount. The appellant, engaged in manufacturing glass bottles, disputed the findings of clandestine removal based on discrepancies in stock verification.

Duty confirmation: The appellant's factory was visited by Central Excise officers who found discrepancies in stock, including unaccounted bottles and shortages. The appellant argued that physical verification of around 4 crores bottles within a short span was not feasible. Despite the appellant's re-verification efforts and revised figures, the Commissioner confirmed the duty demand and penalties.

Personal penalty imposition: A personal penalty of Rs. 1,50,000 was imposed on the appellant under Rule 173Q. However, the Tribunal found no justification for the penalty and set it aside along with the confiscation of plants and machinery.

Confiscation of plants and machinery: The lands, buildings, plants, and machinery were also confiscated with a redemption fine. The Tribunal overturned this decision, stating that there was no justification for the confiscation and set it aside.

In conclusion, the Tribunal allowed the appeal, providing consequential relief to the appellant by setting aside the duty confirmation, personal penalty, and confiscation of plants and machinery.