2004 (2) TMI 184 - AT - Central Excise

Summary

Issues: Confiscation of excess unaccounted goods, imposition of redemption fine, and penalty.

Confiscation of Excess Unaccounted Goods:
The appeal filed by the Revenue concerns the confiscation of excess unaccounted goods. The Central Excise Officers found 24.695 MT M.S. Bars in excess during a physical verification at the factory premises. The stock verification report, signed by the authorized signatory of the respondents, confirmed the discrepancy. The Tribunal held that the method used by the Department for determining the excess goods was valid. The signatory's admission and signature on the verification report were considered binding on the respondents, as it was not retracted. The Tribunal emphasized that such admissions are substantive evidence and can be conclusive. Consequently, the Commissioner's decision to set aside the confiscation was overturned.

Imposition of Redemption Fine and Penalty:
As the respondents failed to account for the excess goods, they were found liable for penalties under Rule 173Q. The original order had imposed a redemption fine and penalty, which the Tribunal upheld. However, considering the circumstances and the duty involved, the redemption fine was reduced to Rs. 20,000 and the penalty to Rs. 10,000. The Tribunal restored the original order-in-original, except for these modifications. The appeal by the Revenue was disposed of accordingly.

This judgment highlights the importance of accurate record-keeping and the legal weight of admissions made by authorized representatives. It also demonstrates the Tribunal's authority to review penalties imposed under relevant rules and adjust them based on the specifics of each case.