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TMI Blog1992 (12) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... ings, which were not accounted for in the RG 1 register though they were painted and allegedly found to be in fully manufactured condition. This was noticed by the Supdt. of Central Excise (P) during the visit to the appellant s factory. Consequent on this, the goods were seized and in the adjudication proceedings held by the Collector, an amount of Rs. 10 lakhs was ordered to be recovered towards the redemption fine in terms of the bank guarantee furnished at the time of provisional release of the goods and a penalty of Rs. 25,000 was also imposed on the appellant. The present appeal is against the aforesaid order. 3. Shri Nankani, the learned advocate, pointed out that out of the aforesaid quantity of 16472 springs, 15032 springs were f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the Ministry of Transport to point out that after inspection, the Inspecting Officer shall affix his stamp or seal on each spring, as a token of the spring having passed the test. He therefore pleaded that after these tests are completed, they would be accounted for before delivery. Hence no serious view should be taken. On a query from the Bench as to whether there are any production records of their own showing the manufacture pending inspections by the authorities of the Railways or by the other agencies, he said that he has no instructions. He also referred to the various types of tests which are required to be carried out particularly in respect of railways springs. He sought to rely on the following decisions of the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e removals of the excisable goods by the appellant. Shri Nankani, however, pleads that during the past 17 years, there has been no allegation of clandestine removal and the fine and penalty imposed are therefore excessive and disproportionate. 5. After hearing both sides, we find the following position undisputed. The springs were found painted after completion of manufacture and such springs are cleared only in loose condition. The object behind the accounting of the manufactured goods is to ensure that the potential duty leviable thereon is secured, the moment they are manufactured. There is no dispute that the appellants had agreed to account for the springs after they are painted. After having agreed to such a position, prima facie, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nternal delivery challans. We also take note of the fact that even as per the contract with the Railways that only delivery is to be effected after inspection. There is bound to be a time lag between the date of manufacture and date of inspection by the Railways. Hence, we cannot agree to a proposition in law that fully finished goods can be allowed to be kept without any accountal and accountal of such goods can be left to the sweet will of the inspection agency, who will take their own time for completing inspection before they take delivery of the goods. This is not a case like drugs or other chemicals, which are packed and marketed only after testing. We have also carefully considered the case laws cited. In none of those cases, there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, we are to sustain the order of confiscation of all the springs (excepting 1440 springs) which are not accounted for. There is an apparent deliberate violation of the legal requirement noticed; because of the fact that the appellants, having agreed to account for the goods after painting, seemed to have ignored the same. Hence, penalty is also required to be upheld. 10. Now, we come to consider the quantum of fine and penalty. The plea raised is that in the past 17 years, there was no case of any attempted clandestine removal from the factory. We also find from the order that there is no allegation of past misconduct, justifying a fine of Rs. 10 lakhs and a penalty of Rs. 25,000. Moreover, much of the goods are tailor-made for Railways ..... X X X X Extracts X X X X X X X X Extracts X X X X
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