1997 (11) TMI 329

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..... s engaged in the manufacture of XLPE PVC power and Control Cables, which are generally supplied to State Electricity Boards. On a visit by Central Excise officers to their factory on 24-5-1996, they checked the stock of finished goods and raw-materials and compared the same with the statutory records. As a result of such check of the goods in stock with reference to the statutory records, it was f .....

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..... ppellant firm is present for the hearing. He states that the goods, in question, were meant for supply to the Mysore State Electricity Board and the cables which had been packed in drums had the necessary embossing thereon to indicate that they were meant for the said customers. For these goods, one test, namely, high voltage test, was to be carried out by the appellants themselves. Further, all s .....

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..... the appellant had packed the goods in drums and these were ready for removal. In the circumstances, the imposition of penalty and confiscation of the goods was justified and the fine in lieu of confiscation fixed as also the penalty amount were commensurate with the stakes involved as goods, in question, were valued at nearly Rs. 8 lakh. He opposed the plea made in support of the appeal. 4. I ha .....

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..... he Commissioner on the ground that the goods, in question, had not been accounted for in the statutory records. The decision in Garden Silk Mills case was not taken with reference to the provisions of Rule 173Q(1)(b) regarding the confiscability of goods which are not accounted for by the manufacturer. In the said sub-rule, there is no requirement of mens rea for ordering confiscation of the goods .....

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..... ction or any other test which were yet to be carried out. As the goods had been manufactured and were otherwise ready in all respects. The confiscation of the goods, though permissible under Rule 173 Q(1)(b), was not really called for. However, the penalty is warranted. The ends of justice would be met if a token penalty is retained on the appellants. Thus, I set aside the confiscation of goods an .....

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