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2010 (1) TMI 1041 - AT - Central Excise
Issues involved: Determination of weight of finished goods for central excise duty, confiscation of excess stock, imposition of penalty, method of weighment, non-recording of production in RG-1 Register.
Determination of Weight of Finished Goods: - The Respondents' factory was visited by central excise officers who determined the weight of MS angles, bars, and flats by weighing representative samples and multiplying by the number of pieces. - Discrepancies were found between recorded weights and actual weights of the goods, leading to seizure and show cause notice for confiscation and penalty. - Commissioner (Appeals) set aside the confiscation order citing the method of weighment as unreliable. Confiscation of Excess Stock: - The Revenue appealed against the Commissioner (Appeals) order, arguing that the weighment method was agreed upon with the Respondents and excess stock warranted confiscation under Rule 25(1) of Central Excise Rules. - Respondent's counsel contended that the method of weighment was unreliable and there was no evidence of intent for clandestine clearances. Imposition of Penalty: - The Asstt. Commissioner had ordered confiscation and penalty, which was set aside by the Commissioner (Appeals). - The Appellant argued that non-recording of production in the RG-1 Register attracts penalty under Rule 25(1)(b) without the need to prove mens rea. Method of Weighment: - The Tribunal found that the weighment method used was not purely by eye estimation, and discrepancies in MS angles, bars, and flats were analyzed. - The judgment in a relevant case was cited to differentiate the present case from instances of purely eye estimation. Non-Recording of Production in RG-1 Register: - The Tribunal upheld the confiscation of MS angles due to non-recording in the RG-1 Register, citing relevant provisions of Central Excise Rules and judicial precedents. - The penalty was reduced considering the absence of evidence for duty evasion through clandestine clearances.
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