INTER METAL TRADE LIMITED Vs. CCE

JUDGEMENT

(1.) THE appellant challenges the order of the Commissioner (Appeals) upholding the confiscation of the goods and imposing the reduced penalty of Rs.20,000/ -.

(2.) THE appellant company was engaged in the manufacture of zinc ingots and zinc ash and availed modvat credit in respect of the inputs. During the surprise visit by the preventive officers of the excise department on 15.03.2000, it transpired, on physical verification of the finished goods and raw material in presence of Shri Rajeev Sharma, the authorized signatory of the appellant company and two independent pancha witnesses, that zinc ingots were in excess to the extent of 28,277 kgs. while there was a shortage of zinc ash to the extent of 1,33,843 kgs. We are not concerned with zinc ash because that aspect has been decided in favour of the assessee and there is no appeal by the revenue.

(3.) IN the earlier appeal filed before the Commissioner (Appeals) against the order of the adjudicating authority, the appellate Commissioner had set aside the confiscation of the goods and imposed a penalty of only Rs. 1,000/ - on the appellant company for not properly maintaining RG -1 register. The demand confirmed and other penalties were all set aside. This order was challenged before the Tribunal and the Tribunal by order dated 12.07.2004 remanded the case to the Commissioner (Appeals) for a fresh decision. By that order, it was observed that the Commissioner (Appeals) had overlooked the authenticity of the panchnama giving the details of the goods found in excess, which was attested by Mr. Rajeev Sharma and other witnesses and that he had wrongly accepted the plea of the assessee that some of the goods did not reach the stage of entry in the RG -1 register, without assigning any reason; whereas, the adjudicating authority had rejected this plea by recording detailed reasons. It was also noted that the Commissioner (Appeals) had not referred to the statement of the authorized signatory of the assessee.