2000 (9) TMI 779 - AT - Central Excise

Summary

Issues:
1. Duty liability on goods seized by officers.
2. Exemption claim based on total clearance value.
3. Maintenance of private records and statutory records.
4. Justification for demand of duty.
5. Reduction of redemption fine and personal penalty.

Analysis:
1. The appellants were engaged in manufacturing PVC Suction Pipe. Officers seized goods from their factory and godown, claiming duty liability. The appellants argued exemption up to Rs. 50.00 lakh clearance, supported by raw material purchase documents and sales records. The adjudicating authority rejected their plea due to lack of private or central excise law records. The appellants contested the lack of evidence showing their total clearance exceeding Rs. 50.00 lakh, requesting the appeal's allowance.

2. The Revenue contended that the appellants should maintain private records even though statutory records were not mandatory for small-scale units. The tribunal acknowledged the appellants' failure to maintain final product production records but emphasized that this should not prejudice them if total clearance value could be proven through collateral evidence like sales tax returns. The tribunal found no justification for assuming the appellants exceeded Rs. 50.00 lakh clearance without concrete evidence.

3. The adjudicating authority's assumption that the appellants intentionally kept production below Rs. 50.00 lakh without records was deemed baseless. The tribunal noted the lack of evidence supporting clandestine manufacture or clearance exceeding the threshold. Consequently, the demand of duty against the appellants was deemed unjustified.

4. While acknowledging the appellants' failure to maintain proper records as required by law, the tribunal justified the seizure of pipes. However, considering the case's circumstances, the redemption fine was reduced from Rs. 20,000.00 to Rs. 10,000.00 and the personal penalty from Rs. 73,625.00 to Rs. 15,000.00. The appeal was disposed of with the mentioned modifications.