2009 (9) TMI 805 - AT - Central Excise

Summary

The appellate tribunal CESTAT New Delhi issued an order in response to an appeal by the Revenue against a previous order-in-appeal passed by the CCE (Appeals) in Lucknow. The original order involved the confiscation of unaccounted fabrics found in the respondent's factory, along with imposed penalties. A team of preventive officers visited the factory and found 1182.20 meters of unaccounted Dobby Plus fabrics. The Assistant Commissioner ordered the confiscation of the fabrics with an option for redemption and imposed penalties. The Commissioner (Appeals) set aside the order of confiscation and penalty, arguing that the seized goods had not reached the finished stage. The Revenue appealed this decision. In the judgment, Shri Rakesh Kumar dismissed the Revenue's appeal, stating that the fabrics were ungraded and yet to be checked for defects, graded, and packed. Since the fabrics could only be sold after grading, they were not required to be entered in the RG-1 register at that stage. Therefore, the Commissioner (Appeals) decision was upheld, and the Revenue's appeal was dismissed. The order was dictated and pronounced in open court.