9911796707
TMI Blog2004 (7) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty of equivalent amount was also imposed under Rule 173Q(1) of Central Excise Rules, 1944 read with Section 11AC of the Central Excise Act, 1944 (Act). Besides the goods seized in the factory were confiscated and allowed to be redeemed on payment of a fine of Rs. 20,000/-. Laminated HDPE woven fabrics valued at Rs. 3,98,317/- (5,657.60 kg.) lying unaccounted in the factory were also confiscated with a redemption fine of Rs. 40,000/- and penalty of Rs. 20,000/- was imposed on the director of the appellants company, Rs. 10,000/- on Shri Vivek Kolhatkar, supervisor and authorised signatory of the assessee company and penalty of Rs. 2,000/- on the appellants was also imposed. 2. The facts in briefs are as under :- During a surprise ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintain such simple records clearly and carefully when they are opting/availing exemption HDPE granules and also availing exemption under Notification No 4/97 (Sr. No. 57) for finished goods viz. Laminated HDPE fabrics Chapter 3926.90, which are manufactured out of HDPE on which Modvat is not availed. But in such cases the duty is attracted on intermediate goods viz. Plastic tapes/strips failing under Ch. 39.20 of Central Excise Tariff Act, 1985 and attract Central Excise duty by virtue of Notification. No. 4/97 Sr. No. (55). If they have given such separate accounts to Range alongwith monthly R.T.12 return, then they will have to pay central excise duty on plastics tapes/strips which is gone in such fabrics cleared under Nil rate of d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inst the appellants. Whether a person has taken Modvat credit or otherwise is matter of central excise record and requires no support of any recorded statement. It has also come on record that the appellants has two channels of manufacture :- one, where the inputs credit is taken and finished products pay duty and the other, where no such credit is taken and the goods are cleared without payment of duty. In the absence of any positive evidence to point out that, the appellants had taken credit on the inputs used in the manufacture of 5 rolls of fabrics under seizure, I hold that the said goods are eligible for full exemption in terms of the Notification. It is nobody s case that the fabrics are intended for manufacture of bags/sacks. Hence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be treated as a technical breach even if G.P.1 or debit entry has been made for such goods. In view of above findings the assessee is also liable for penalty U/R 226 of Central Excise Rules, 1944. 9. So far as this observation is concerned, I find that distinction between an act of non-accountal and a failure to make an entry has been missed. It has to be understood that the term non-accountal covers a wider activity aimed at leaving no trace of the fact that excisable goods have come into existence. In this case an accountal of the goods manufactured and cleared for captive consumption has already taken place and the same were available in the R.G.1. Only the entry of finished goods manufactured from the stock captively co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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