2004 (8) TMI 272 - AT - Central Excise

Summary

Issues involved:
The issues involved in the judgment are related to excess goods found during a factory visit, discrepancies in registers, duty demand, penalty imposition, Modvat credit claim, and the confiscation of goods.

Issue 1: Excess Goods and Duty Demand
The officers found excess goods during a factory visit and discrepancies in registers regarding production and sales entries. A show cause notice was issued proposing duty recovery and penalties on the director. The Commissioner concluded that the registers depicted actual clearances and production, with some entries considered as clandestine clearances. The duty demand was reduced after allowing a benefit, and the Commissioner confirmed the duty demand, confiscated excess goods, and imposed penalties.

Issue 2: Discrepancies in Registers and Clandestine Clearances
The reliance on registers without obtaining the author's explanation was deemed as an assumption. The alleged clandestine clearances were questioned for lack of concrete evidence, and the tribunal emphasized the need for tangible evidence for such charges. The tribunal referred to a previous case to support the argument that demands based on registers without author clarification should be set aside. The confiscation of seized goods was upheld, and no orders were passed on the penalty for the director.

Conclusion:
The appeal of the assessee was partially allowed based on the above terms.