9911796707
TMI Blog2002 (10) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... ises, wherein documents were seized under a Panchnama in the presence of witnesses. On 23-12-98, the officers conducted physical stock verification in the factory and found an excess stock of 8175.05 sq. mtrs. of plywood of different brands valued at over Rs. 19 lakhs and involving central excise duty to the tune of Rs. 3,57,922.53. A statement of Dy. Manager (Production) of the Company was recorded on 23-12-98. The goods found in excess were seized but released to the party on execution of bond. A show cause notice dated 2-6-99 was issued by the department to the respondents for confiscating the seized goods and imposing penalty on the party. The party denied the allegations contained in the show cause notice. The adjudicating authority or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nai). The DR submits that the present case is purely a case of non-accountal of finished excisable goods in RG-1 Register which, according to him, attracts the confiscation and penalty provisions of Clause (b) of Rule 173Q(1), which do not require any mens rea. He submits that the finished nature of the goods found in excess of the RG 1 balance is not in dispute and, therefore, non-accountal of such goods in RG 1, should be visited with the penalty under Clause (b) of Rule 173Q(1). 5. Ld. Counsel for the respondents, on the other hand, gives an account of modus operandi of the respondents and submits that the goods found in excess were kept in the finishing room near to the Bonded Store Room (BSR), and the same were about to be removed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. It is not in dispute that the finished goods which had entered the RG-1 stage were found in the finishing room of the respondents' factory. According to the assessee, the goods were about to be removed to the BSR for being accounted for in RG-1. According to the appellant, the goods were kept in the finishing room with intent to remove the same clandestinely without payment of duty. The allegation in the show cause notice is as under :- "Thus, from the foregoing facts, it appears that the party manufactured and stored seized excisable goods with an intent to remove the same clandestinely without payment of duty, contravening the provisions of Central Excise Rules 53, 173G and 226 of Central Excise Rules, 1944." The above allegatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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