COMMISSIONER OF CENTRAL EXCISE Vs. KUMAR STEELS

JUDGEMENT

(1.) In both the appeals, the Revenue has questioned the validity of the impugned orders -in -appeal vide which the Commissioner (Appeals) has reduced the redemption fine and the penalty as imposed on them by the adjudicating authority.

(2.) The facts are not much in dispute. On visiting the factory premises of the respondent No. 1 some finished goods were found lying excess and unaccounted in the statutory record. The value of those goods was Rs. 63,000/ -. The adjudicating authority ordered confiscation of those goods and allowed redemption of the same on payment of fine of Rs. 7,000/ - and also imposed penalty of Rs. 10,000/ -. The Commissioner (Appeals) has maintained that order. But reduced the redemption fine to Rs. 6,000/ - and penalty to Rs. 2,000/ -. Similarly on visiting the factory premises of respondent No. 2 some finished goods were also found lying excess and unaccounted in the statutory record. The value of those goods was Rs. 74,761/ -. The adjudicating authority ordered confiscation of those goods and allowed redemption of the same on payment of redemption fine of Rs. 8,000/ - and personal penalty of Rs. 10,000/ -. The Commissioner (Appeals) has maintained that order. But reduced the redemption fine to Rs. 5,000/ - and penalty to Rs. 2,000/ -.

(3.) The learned JDR has contended that penalty could not be reduced to Rs. 2,000/ - as under Rule 25 of the Rules the penalty has to be minimum of Rs. 10,000/ - which the adjudicating authority has rightly imposed. The redemption fine also according to the learned JDR could not be reduced.