CCE Vs. J.M. PLASTICS (P) LTD.

JUDGEMENT

(1.) REVENUE filed this appeal against the Order -in -Appeal passed by the Commissioner (Appeals).

(2.) THE brief facts of the case are that the respondents are engaged in the manufacture of electric fans and cooler kits. On 28.5.98, the officers of the Revenue department visited the factory premises of the respondents and it was found that their statutory records such as RG -1 and RG -23A Part -I were maintained up to 20.5.98 and no entry was made thereafter. Show cause notice was issued to the appellants for confiscation of the goods found in excess of the statutory records. The demand was also raised on the finished goods and parts removed by the respondents as free replacement. The Adjudicating Authority confiscated the excess goods and ordered release of the same on payment of redemption fine. Duty in respect of the inputs found short was also confirmed. The inputs which were not entered in the statutory record were also confiscated and ordered to be released on payment of redemption fine. The modvat credit in respect of input which was found short was also denied. Demand was also confirmed in respect of the goods which were removed as free replacement. Personal penalty on the firm as well as Director and Manager was imposed. Appellants filed appeal and the Commissioner (Appeals) after taking into consideration the production and clearance during the period 20.5.98 to 27.5.98, set aside the confiscation of the finished goods found excess in their statutory record and also reduced shortage of number of fans.

(3.) THE Commissioner (Appeals) in the impugned order, however, upheld the demand in respect of goods cleared as free replacement and also upheld the denial of credit in respect of inputs found short.