1997 (1) TMI 359 - AT - Central Excise

Summary

Issues:
1. Duty evasion on goods found short, removed without payment, and in excess.
2. Confiscation of goods, imposition of penalty, and appeal against Assistant Collector's decision.
3. Discrepancies in stock verification and duty payment.
4. Application of trade notice on goods confiscation.
5. Reduction of penalty and confirmation of duty liability.

Analysis:
1. The case involved allegations of duty evasion on goods found short, removed without payment, and in excess. The Assistant Collector confirmed duty on shortages but dropped recovery on goods found in other premises. Confiscation of excess goods and imposition of penalties were also ordered.

2. The appellant argued that goods found in other premises should be considered common stock, offsetting shortages. They accepted duty liability on net shortages of certain items. The appellant also claimed ignorance for incomplete records due to previous exemption benefits. The Tribunal agreed with the appellant on shortage adjustments but confirmed duty on specific items and reduced penalties.

3. The respondent contended that duty was not debited for cleared items and cited a trade notice on goods confiscation. They argued that the confiscation was justified due to discrepancies in duty entries and excess stock. The Tribunal disagreed, emphasizing the appellant's practice of post-inspection entries and ruled against excess stock confiscation.

4. The Tribunal analyzed the discrepancies in stock verification and duty payment. They confirmed duty liabilities on specific items, adjusted shortages, and disagreed with the application of the trade notice on confiscation. The Tribunal set aside the redemption fine on excess stock and reduced the penalty based on their findings.

5. The final decision confirmed duty liabilities on specific items, adjusted shortages, and reduced the penalty imposed. The Tribunal disposed of the appeal and stay petition accordingly, concluding the case.