9911796707
TMI Blog1999 (11) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... mo book maintained by one of them. On the allegation that the assessees had given free replacement of certain capacitors without payment of duty, short levy to the extent of Rs. 2,85,590.85 was alleged. In the impugned order, the Collector confirmed the demand confiscated the goods but allowed their redemption on payment of a fine of Rs. 1 lakh and also imposed a penalty of Rs. 2 lakhs on the assessees. Hence the appeal. 2. Shri J.C. Patel, appeared for the appellants. Revenue was represented by Shri A. Ashokan, JDR. 3. The reason given through out the proceedings for not recording the manufactured capacitors in the RG I register is that according to the practice of the assessees, the entry is made only when subsequent to the inspection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the default in complying with the statute was sufficient for levy of penalty. The Court observed that the penalty was a civil obligation and a coerceive remedy. The sentiments expressed by the Supreme Court in a matter pertaining to the Income Tax would be relevant when dealing with the provisions of the Central Excise Act also. We therefore follow the Supreme Court s judgment and uphold the Commissioner s order in rendering the goods to confiscation. 5. As regards the allegation that the assessees had cleared certain goods clandenstinely without payment of duty, we have perused the Collector s order and have seen the documents relied upon. One Shri Jignesh Bhachech had maintained a diary. He was a technical supervisor. His job was repai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement or from the memo book. As against this, the Show Cause Notice mentions the statement of Shri Patri. When he was shown the internal memos so written, Shri Patri clarified that as per his knowledge the words free replacement indicated free repairs . 7. We find that even if certain quantity as per the memos, was proposed to be given to the customers as free replacement the evidence produced and discussed is not adequate to show that the replacements when ultimately sent were cleared without payment of duty. The demand made on the basis of Shri Arif s statement, read with memo book also, does not survive. 8. In the light of our findings when we look at the penalty imposed upon the assessees, we find that it is excessive. We reduce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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