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TMI Blog2001 (11) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... se Rules, 1944 read with Section 11A(1) of Central Excise Act, 1944. Penalty of equivalent amount has been imposed under Rule 173Q read with Rule 226 of Central Excise Rules, 1944. The said demand of duty has been confirmed and penalty imposed on the findings of clandestine removal of the appellants' final product. The said findings are based upon the entries made in the double set of production slips being maintained by the appellant. The said production slips were recovered from the almirah kept in the office premises during the course of visit of the Central Excise Officers in the said factory. It is seen from the records that the maintenance of two sets of production slips bearing same serial number and the same dates have not been deni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty of Rs. 5,000/- (rupees five thousand) has also been imposed under Rule 173Q of Central Excise Rules. 3. I have heard Shri S.K. Roychowdhury, ld. Adv. for the appellants and Shri D.K. Bhowmik, ld. JDR for the Revenue. 4. As regards the findings of clandestine removal are concerned, I do not find any force in the appellants' submission that the second set was being maintained out of omission and inadvertant mistake. Admittedly the two sets of production slips carry the same serial number and the second set involving clandestine manufacture was located by the officers from the almirah of the office. The statements recorded during the course of investigation have also not disputed the said factum of presence of two sets of prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Q, without any reference to Rule 226, by applying the ratio of the above referred decision I set aside the confiscation. As regards penalty of Rs. 5,000/- (rupees five thousand) imposed under Rule 173Q, I find that the show cause notice proposes imposition of penalty under the said rule as also under Rule 226, even though the same has been imposed under Rule 173Q. Inasmuch the appellants have admittedly not maintained the records properly by not entering the scrap in RG-1 register, penalty is imposable under Rule 226. However, maximum limit under the said rule for imposition of penalty is Rs. 2,000/- (rupees two thousand). Accordingly I reduce the penalty of Rs. 5,000/- (rupees five thousand) to Rs. 2,000/- (rupees two thousand). Appeal dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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