SASHI CABLES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.)

(2.) AFTER hearing both the sides, I find that the appellants are engaged in the manufacture of various types of conductors, steel stranded wires, alloy wires, etc. Their factory was visited by the Central Excise officers on 2 -1 -2008, who conducted various checks and verifications. As a result, shortage in the raw -materials, i.e., steel wire rod and alloy wire rod was detected involving duty demand of Rs. 1,46,339/ - (Rupees one lakh forty six thousand three hundred and thirty nine only) and Rs. 93,634/ - (Rupees ninety three thousand six hundred and thirty four only) respectively. The appellants accepted the said shortages and debited the Cenvat credit to that extent. However, there was no acceptance to the effect that the said short found inputs stands cleared by them clandestinely. Further, the officers also found the excess raw -materials, i.e., aluminium wire rod, totally valued at Rs. 6,75,518/ - (Rupees six lakh seventy five thousand five hundred and eighteen only). The same was seized by the officers. On the above basis, proceedings were initiated against the appellants resulting in passing of the impugned order, vide which the duty in respect of short found goods was confirmed and equal amount of penalty was also imposed. In addition, the officers also confiscated the excess found raw -materials with an option to the appellants to redeem the same on payment of redemption fine of Rs. 1,70,000/ - (Rupees one lakh seventy thousand only) and penalty of Rs. 6,75,518/ - (Rupees six lakh seventy five thousand five hundred and eighteen only), equivalent to the value of the confiscated goods, was imposed upon them.

(3.) I agree with the ld. Advocate on the above count. The provisions of Rule 15 of the Central Excise Rules, 2002 under which the excess found raw -materials have been seized are not applicable in as much as the same relate to the inputs on which credit has been wrongly availed. As such, I set aside the confiscation of excess found raw -materials and imposition of penalty on the said ground. But for confirmation of total duty of Rs. 2,39,973/ - (Rupees two lakh thirty nine thousand nine hundred and seventy three only) as not contested, the appeal is otherwise allowed. The appeal is disposed of in the above manner.