1999 (1) TMI 131 - AT - Central Excise

Summary

Issues:
Excess stocks of steel ingots in transit and unaccounted stocks found in factory premises, imposition of central excise duty, redemption fine, penalty, discrepancy in excise records, appeal against the orders of adjudicating authority and Collector of Central Excise (Appeals).

Analysis:
The appeal pertains to M/s. Samman Steel & Rolling Mills (P) Ltd. concerning the discovery of excess stocks of steel ingots in transit and unaccounted stocks in their factory premises. The Dy. Collector of Central Excise, New Delhi, confirmed the demand for central excise duty along with a redemption fine and penalties. The Collector of Central Excise (Appeals) upheld the decision but reduced the redemption fine. The primary contention raised by the appellants was that discrepancies were due to the absence and negligence of their staff, and they argued against the imposition of penalties.

During the hearing, the appellants claimed that the excess stocks were loaded mistakenly due to labor error, and they disputed the method of calculating excise duty. However, the Respondent argued that the discrepancies indicated a deliberate attempt at surreptitious removal of goods without payment of excise duty. The authorities found that the records were not maintained up to date, and excess goods were transported without excise duty payment, leading to the imposition of fines and penalties.

Upon careful consideration, the Tribunal noted that the discrepancies in records and stocks were admitted by the appellants, and the duty liability was acknowledged. The Tribunal dismissed the appeal, emphasizing that the excuses provided by the appellants for the discrepancies were not valid. The decision of the Collector of Central Excise (Appeals) to reduce the redemption fine was upheld, and the appeal was rejected based on the facts and circumstances of the case.

In conclusion, the Tribunal found no merit in the appeal and upheld the orders of the lower authorities, emphasizing the importance of maintaining accurate records and complying with excise duty obligations.