JAGNNATH STEEL (P) LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal is directed against the order in appeal dated 16/9/93, which upholds the adjudication order wherein the demand was confirmed and penalty imposed against appellants.

(2.) THE relevant facts that arise for consideration are that the officers of the central excise visited the factory premises of the appellants, on 10/1/96 and authority found finished goods 25,389 M.T. of steel ingots short. The officers again visited the appellant's factory premises again found 50.0 M.T. of MS ingots physically against the recorded balance of 402.389 M.T. of ingots in RG -I. Hence total shortage of 352.389 was registered and a show cause notice was issued to the appellants demanding the duty on such short found finished goods and penalty was sought to be imposed. The adjudicating authority confirmed the demand and also imposed penalty on the appellants. On an appeal, the Commissioner (Appeals) allowed the appeal of the appellant by way remand, directing the adjudicating authority to consider the case afresh. The adjudicating authority, in de novo proceedings after considering all the evidences available on records and submissions of the appellants, confirmed the demand and imposed equivalent amount of penalty. On appeal the commissioner (Appeals) upheld the demand of the duty but reduced the penalty Rs. 5000/ -. Hence this appeal by the appellant. Revenue is not in appeal against the reduction of penalty.

(3.) THE learned DR on the other hand submits that the shortage of the finished goods has been accepted by the representatives of the appellant, in their statements, which were recorded on separates dates. Having given them ample opportunity to explain the shortage, the appellant have failed and hence there is no reason to interfere in the order in appeal. He further submits that the adjudication is done by the proper authority despite the fact that the SCN is issued by the Superintendent of Central Excise. For this proposition, he relies upon the case law of Pahwa Chemicals Pvt. Ltd. v. CCE Delhi .