1986 (6) TMI 214 - AT - Central Excise

Summary

Issues Involved: Alleged irregularities discovered during factory visit by Central Excise Officers leading to seizure and subsequent actions under Central Excise Law.

Details of Judgment:

1. Seizure and Alleged Irregularities:
- Central Excise Officers discovered various irregularities including missing entries in RG-1 Register, missing rubber transmission belt, excess beltings, and clearance of goods without accounting or duty payment.
- Show cause notice issued, leading to penalty imposition and confiscation of beltings and V-Belts by Collector Central Excise, Kanpur.

2. Appeal Process:
- Appellants appealed to Central Board of Excise and Customs, which confirmed Collector's orders but reduced penalty.
- Subsequent Revision Application before Central Government transferred to Tribunal for appeal.

3. Appellants' Arguments:
- Appellants argued that seized goods were unfinished, documents relied upon were unreliable, and seizure lacked reasonable belief as required by law.

4. Respondent's Arguments:
- Respondent opposed appellants' arguments, asserting correctness of allegations and legality of seizure and subsequent actions.

5. Judicial Analysis:
- Tribunal examined arguments regarding legality of seizure, citing relevant case laws to support the decision.
- Detailed analysis of each irregularity and counter-claims presented by both sides.

6. Final Decision:
- Tribunal upheld some findings of the Board regarding unaccounted beltings and V-Belts, while modifying penalties and confiscations based on the evidence presented.
- Reduced penalty imposed on appellants, acknowledging certain irregularities but also setting aside some demands based on lack of conclusive evidence.

7. Conclusion:
- Penalty reduced from Rs. 5,000 to Rs. 2,000, and certain demands set aside based on benefit of doubt.
- Overall, the appeal was partly allowed, with modifications to the impugned order based on the evidence and arguments presented during the proceedings.