2004 (11) TMI 212 - AT - Central Excise

Summary

Issues involved: Appeal against confiscation of goods and penalty imposed u/s 53 and 226 of Central Excise Rules, 1944.

Summary:
The appeal was filed against the Order-in-Appeal confirming the confiscation of goods seized by Central Excise officers and the penalty imposed. The Appellants, manufacturers of Portable Electric Generator Sets, argued that the seized goods were in the process of manufacture and not required to be entered into the RG-1 Register at that stage. The Appellants contended that Rule 2(a) of the Interpretative Rules does not apply to entering semi-finished goods in the RG-1 Register. The Revenue emphasized the need to account for finished and semi-finished goods in the RG-1 to prevent clandestine removal. However, the Tribunal considered the submissions and noted that the seized goods were in the process of manufacture, as confirmed by the Manager Excise & Warehouse. As per the Tribunal, goods need to be entered into the RG-1 Register only after being fully manufactured and tested. Rule 2(a) of the Interpretative Rules is applicable only to determine the stage for entering goods in the RG-1 Register. Consequently, the goods were not liable for confiscation, and no penalty was imposable on the Appellants. The appeal was allowed, overturning the confiscation and penalty.