2010 (10) TMI 986 - AT - Central Excise

Summary

Issues involved: Appeal against confiscation and penalty u/s Rule 25 of Central Excise Rules, 2002 due to non-entry of finished goods in RG1 register.

Summary:

Issue 1: Confiscation and Penalty under Rule 25 of Central Excise Rules, 2002
The appellant's appeal was against the confiscation and penalty imposed under Rule 25 of Central Excise Rules, 2002 for not entering finished goods in the RG1 register. The appellant explained that the goods were not entered due to the person handling records being on leave and the appellant being out of town, not for clandestine removal. The appellant cited precedents like Dhanraj Enterprises and Amrit Foods to argue against the confiscation and penalty. The appellant also highlighted the importance of being notified of the exact contravention, as per the decision in Amrit Foods. On the other hand, the respondent relied on cases like C.C.E., Vapi v. Modison Ltd. to support the confiscation and penalty. The Tribunal considered the requirement of mens rea for confiscation under Rule 25(a), (b), or (c) of the Central Excise Rules, 2002. The Tribunal referred to the decisions of the Hon'ble High Court of Punjab and Haryana in Sadashiv Ispat Ltd. and C.C.E., Jalandhar v. Indo German Fabs., emphasizing the necessity of mens rea for invoking Rule 25. The Tribunal concluded that in the absence of mens rea, the provisions of Rule 25 were not applicable, setting aside the impugned order and allowing the appeal.

Conclusion:
The Tribunal ruled in favor of the appellant, setting aside the confiscation and penalty under Rule 25 of Central Excise Rules, 2002 due to the absence of mens rea, as per the precedents and legal interpretation provided.