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TMI Blog1995 (4) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... hem which had not been entered by them in their statutory stock account, giving them the option to redeem them on payment of redemption fine of Rs. 2 lakhs in lieu of confiscation. In addition penalty of Rs. 50,000/- had also been imposed on them under Rule 173Q of the Central Excise Rules for contravention of Rule 173G of Central Excise Rules. 2. The appellants were represented by Shri L.P. Asthana, learned Advocate during the hearing of the appeal. He referred to the contentions raised in the appeal and the subsequent written submissions given by them. He emphasised the point that the transformers in question were in the factory premises only and there was no attempt by them to remove them from the factory without payment of duty. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Collector when he visited their factory that the transformers were coated with grey paint only after manufacture is complete. In some of the transformers the appellants had given a coating of Red Oxide over the grey paint only to mislead the departmental officers that they were not fully manufactured transformers. The confiscation of the offending goods with option to redeem them on payment of fine in lieu of confiscation and the imposition of penalty are fully justified. The order deserves to be upheld and the appeal dismissed, concluded Shri Mathur. 3A. We have considered the submissions. We have gone through the record. We have taken note of the Tribunal decisions cited on behalf of the appellants. The confiscation and imposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs upon his personal observations during his visit undertaken after the personal hearing was over. He has found that 65 transformers were painted with red oxide. As he was informed by the officer who had originally seized the goods and who was also available at the time of his visit that these were painted grey at the time of seizure, he tested the upper surface of some of the transformers when it was found that underneath the coating of red oxide the transformers were painted grey. The appellants could not explain why once the transformers were painted grey which also they had stated was given only after they were complete in all respects were subsequently again painted with red oxide. This he has held showed the presence of mala fide inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eria for the testing. They have disputed his observation that they had stated before the Additional Collector that the transformers had been painted due to the mistake of the painting staff. They have referred to their letter dated 8-3-1990 written to the Collector wherein they had pointed out that the seized 148 transformers were only partly manufactured as they were not then fitted with an essential part viz. silica gel breather and also the necessary testing of each transformer was still to be done by their Engineer. They stated that after completing the above two processes the transformers were to be brought to the finishing room to be painted. Only the primary coating of red oxide paint had been done on 98 transformers and 2 coats of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on that their concerned clerk, Shri Jafri had been seriously injured with fractured hands. In his absence another person, a sales clerk is reported to have handled the work and he had cleared 38 transformers for which duty was paid and Gate Passes were issued though he had not posted the entries in the RG-1 register. The irregular maintenance of statutory records, whatever be the circumstances, is contravention of Rules 53, 173G and 226 of Central Excise Rules attracting penal provisions of Rule 173Q as brought out in the order. Such non-maintenance of records as required was, however, not with any intent to evade duty and no evasion of duty has also been alleged or established. However, in view of the extenuating circumstances of the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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