CCE Vs. MANGAL SPONGE AND STEEL LTD.

JUDGEMENT

(1.) AFTER hearing both the sides and on perusal of the records, it is seen that the Central Excise Officers during stock verification at the respondent's factory detected shortage of finished goods involving Central Excise Duty of Rs. 60,015/ -. The Original Authority confirmed the demand of duty and appropriated the said amount as deposited by them and also imposed penalty of Rs. 1,000/ -. The Revenue filed appeal before the Commissioner (Appeals) for imposition of penalty of equal amount of duty. The Commissioner (Appeals) enhanced penalty to Rs. 10,000/ - under Rule 25 of the Central Excise Rules, 2004.

(2.) IN the impugned order, the Commissioner (Appeals) observed that there is no material on record to suggest that there was any element of mens rea on the part of the respondent. The shortage was detected during stock verification.