2004 (6) TMI 637 - AT - Central Excise

Summary

Issues: Challenge to Order-in-Appeal confirming duty demand, confiscation of goods, and penalties.

In this case, M/s. Kanodia Technoplast Pvt. Ltd. challenged Order-in-Appeal No. 481/CE/03 dated 4.12.03, which confirmed duty demand on short inputs, confiscation of excess finished goods, and imposed penalties. The Appellants, engaged in manufacturing laminated rolls and polythene products, argued that the excess finished goods were daily production, not liable for confiscation as per their practice. They contended that the shortage of PET films was due to space constraints in the store, with no evidence of removal. Despite paying the duty before the show cause notice, they relied on a precedent to argue against penalty imposition.

The Departmental Representative countered that the Appellants failed to prove the excess goods were daily production or the presence of the alleged shortage on the factory floor during the visit. They argued that duty confirmation, goods confiscation, and penalty imposition were justified.

The Tribunal analyzed the submissions and found the Appellants' claims unsubstantiated. They upheld the confiscation of excess finished goods, citing non-compliance with daily stock entry requirements. The redemption fine was reduced to Rs. 20,000. Regarding the shortage of inputs, the Tribunal noted the lack of evidence supporting the Appellants' claims, confirming the duty demand and imposing a penalty of Rs. 15,000 based on the Supreme Court's ruling emphasizing penalty liability irrespective of duty payment timing. Thus, the Appeal was disposed of with the imposition of the mentioned penalty, maintaining duty confirmation and goods confiscation.