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TMI Blog2016 (12) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... are bound to maintain proper accounts of the finished stock. Further, Rule 173(Q) of erstwhile Central Excise Rules 1944 empowers confiscation of goods for not making proper entry / not accounting the goods. Again, Shri L Mohan Kumar, Managing Director of appellant, inter alia has stated that no further manufacturing is to be done on the goods seized. Therefore, I do not find any ground to interfere with the confiscation of goods. Penalty - Held that: - The facts of the case evidence contravention of the provisions of Central Excise Acts and Rules. The adjudicating authority has imposed penalty of ₹ 12,92,749/- which is equal to the duty amount settled by appellant before the Hon’ble Settlement Commission and therefore, the said p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o unearthed like unaccounted raw material, suppression of production, clandestine clearance of PVC pipes and under-valuation of goods. Statements of several persons were recorded and the appellants were issued show cause notice dated 14-10-1999, wherein it was alleged as to why the excess quantity of 1814 nos. of various varieties of PVC pipes valued at ₹ 10,05,184/- and 49 MTs of waste parings and scrap of PVC pipes valued at ₹ 1,96,000/- should not be confiscated and why penalty should not be imposed. 2. Though the assessee was given several chances to file reply, it is seen stated in the adjudication order that the assessee did not file reply or appear for the personal hearing. An ex-parte Order-in-Original dated 20-02-200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng. 5. On behalf of the appellant, the Ld. Counsel Shri Y.Sreenivasa Reddy submitted that the excess stock found in the factory was due to the varieties of PVC pipes manufactured by the appellant. He submitted that the pipes were piled up and the different varieties having not been segregated there appeared to be excess quantity at the time of verification of stock. The goods seized were not in packed condition and therefore were not ready for despatch. Only when the goods are in packed condition, the allegation of not entering the stock of finished goods in the records, with an intent to evade payment of duty will arise. He pleaded that the goods confiscated are more than 10 years old, and presently therefore, imposing redemption fine o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The said provision states that the officer having jurisdiction to whom the case has been sent back shall thereupon dispose of the case in accordance with the provisions of Central Excise Act, as if no application under Section 32E had been made . Therefore, I cannot accept the contention of the Ld AR that as the appellant has approached Settlement Commission there is an admission of liability. However, the fact that the present show cause notice is a separate stem from the same investigation and also the fact that the same goods are involved, cannot be disregarded in toto, as the liability to pay duty on the excess quantity of goods has been settled. The appellant has not been able to give any explanation for the non-accountal of excess qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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