9911796707
TMI Blog2001 (1) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant No. (2) under Rule 209A of the Rules. 2.The facts giving rise to this appeal may briefly be stated as under: 3.The appellants were engaged in the manufacture of copper wire bars/ingots, strips copper wire of refined copper etc. They had been availing Modvat facility under Rule 57A of the Rules. On 8-12-1996 surprise raid was conducted on the factory premises by the Central Excise Officers (Preventive) and Shri R.C. Prasad (appellant No. 2), authorized signatory of the firm of appellant No. (1) was present at that time in the factory. After scrutiny of the record and physical stock checking of the finished goods as well as the raw materials lying in the factory premises, 108 coils of copper strips weighing 12.420 MT valued at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments. 4.The Commissioner, however, did not accept this version of the appellants and ordered confiscation of the goods involving excise duty of Rs. 2,27,286/- with option to get them redeemed on payment of Rs. 4,00,000/- and imposed penalty of Rs. 1,00,000/- under Rule 173Q of the Rules on the appellants. He also imposed penalty of Rs. 25,000/- on appellant No. (2) Shri R.C. Prasad, under Rule 209A of the Rules, being authorised signatory of appellant No. (1). The Commissioner, however, vacated the seizure of 120 MT of copper cathodes through the impugned order. 5.Both the appellants have filed the present appeals. 6.I have heard both sides and gone through the record. 7.The learned Counsel for the appellants has assailed the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 108 coils of strips were found in excess of the recorded balance in the RG. 1 Register and 120 MT of copper cathodes were found in excess of the recorded balance in the Form IV Register. Both these goods were seized through panchnama prepared at the spot. So far as the seizure of 120 MT of copper cathodes is concerned that is not the matter of dispute in the present appeals as those were released and the seizure was vacated by the Commissioner himself who adjudicated the matter. 8.The only dispute involved in the present appeals is regarding the validity of the order of the Commissioner, for confiscation of the seized 108 MT coils of strips which were allegedly found in excess of the recorded balance in the RG. 1 Register. In the show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the finished condition and could be marketed. In this context, reference may be made to Emco Industrial Chemicals Ltd. v CCE, Pune, 1987 (32) E.L.T. 220 wherein it has observed that "when the goods could not be treated as fully manufactured in a marketable condition, their entry in RG. 1 Register was not required and as such no case was made out against the assessee for confiscation of the goods and imposition of penalty under Rule 173Q of the Rules". The case of the present appellants falls within the four corners of the ratio of the law laid down in that case. The adjudicating authority, the Commissioner in fact mis-interpreted the facts and proceeded on the wrong assumption that the coils of copper strips seized from the factory pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s rule. This rule has to be read in conjunction and not in isolation with other provisions". 11.Besides all this, it remains undisputed that the show cause notice was issued much after the expiry of six months from the date of seizure of the goods. The seizure was made on 8-12-1996 whereas the show cause notice was issued only on 5-8-1997 after the expiry of six months without any allegations of fraud, collusion or wilful mis-statement or suppression of facts. There is nothing on the record to suggest that the appellants ever made any mis-statement regarding stock of the raw material and the finished goods lying in their factory premises. There were no allegations even to that effect in the show cause notice. No fraud or collusion had als ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
