MURUGAN MILLS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellant has filed the present appeal against the Commissioner (Appeals) order dt. 18.8.2005.

(2.) The brief facts of the case are that an offence case was registered against the appellant consequent on the seizure of Grey Cotton Fabrics during interception of vehicle from the transporter removed without valid duty paying documents and without payment of Central Excise duty. Out of the total quantity of 65 bales of Grey Cotton Fabrics seized, 40 bales of Grey Cotton Fabrics belonged to the appellant. Immediate stock verification of finished goods in the appellant's factory, it was noticed a shortage of grey cotton fabrics of 49,831 mtrs. The adjudicating authority in his order confirmed the demand of Rs.83,467/ - and also appropriated the same from the cash security of Rs.1,65,000/ - paid by the appellants vide TR.6 challan No. 9/03 -04 dt. 16.3.2004 during provisional release of the seized goods and also confirmed interest and imposed equivalent penalty under Section 11AC of the Central Excise Act, 1944. He also confiscated 38,889 mtrs. of Grey Fabrics seized and provisionally released and imposed redemption fine of Rs.65,500/ - in lieu of confiscation and also appropriated the same from the cash security. He dropped the demand of cenvat credit of Rs.15,428/ -.

(3.) AGGRIEVED by the order, the appellant filed appeal before Commissioner (Appeals). The lower appellate authority vide impugned order held that the quantity found shortage at the factory premises is inclusive of seized quantity and since confiscation of such seized quantity is already justified to the remaining quantity of 10,942 mtrs. of grey fabrics and directed the adjudication authority to re -quantify the duty liability on the revised quantity and to determine the reduced penalty proportionately equivalent to the revised duty. Hence the present appeal.