9911796707
TMI Blog1999 (12) TMI 412X X X X Extracts X X X X X X X X Extracts X X X X ..... pters 38 and 39. The finished products Alkyde Resin, Malamine Formaldehyde and Polyamide are in dispute. On a visit to the factory premises of the appellants on 17-10-1996, the officers of Central Excise found that the above mentioned finished products totally weighing 51,990 kg were kept outside the factory premises in a vacant plot of an adjacent factory. It was also found that 200 kgs of Malamine Formaldehyde were short of the recorded stock. It was also found that 14,647/- kgs. of various inputs were short of the recorded stock. Polyamide Resin weighing 41 kgs was kept outside the specified or approved place of storage but within the factory. These goods were seized in the reasonable belief that they were liable to confiscation. SCN was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are short levy, non-levy or short payment or erroneous refund or reason of fraud, collusion or for wilful misstatement or suppression of facts. He submits that the goods were recorded in the prescribed statutory records and were found at a place other than BSR. He submits that there is no question of non-levy or short levy or short payment on the goods. He submits that in no case at the time of removal of the goods, the duty would not have been paid. He submits that the liability to pay duty arose immediately when the goods got recorded in the RG 1 register. He submits that the goods were invariably recorded in the RG 1 register and that this contention has not been rebutted by the respondents. He submits that there is no fraud or collusio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances and ingredients of the situation are stated above. In the circumstances, we find that the appellants claimed that the goods were recorded in RG 1 register. Since the goods were recorded in RG 1 register, the liability to pay duty and accountal for the goods was complied with and remained with the assessee. Thus, the violation of the provisions of Rule about stocking of the goods in the approved place is there. This is not such a violation so as to invite the mandatory penalty. This type of violation can be dealt with under Rule 173Q. In view of the fact the goods were recorded in the RG 1 register and were found in the factory premises as also in the adjacent premises, this violation cannot be treated as serious to invite mandatory p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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