COMMISSIONER OF CENTRAL EXCISE Vs. SADASHIV ISPAT LTD

JUDGEMENT

(1.) The Revenue has impugned the order (Annexure P-3) passed by the Customs, Excise and Service Tax Appellate Tribunal (for short 'the Tribunal') dated 22.12.2004, vide which the appeal of the Revenue was dismissed and it was held that there was no mens rea on part of the respondent to clandestinely remove the finished goods from the factory premises.

(2.) The respondent M/s Sadashiv Ispat Ltd. are manufacturers of alloy steel flats/bars and rounds, falling under Chapter 7226.00 and 7228.00 of Schedule to Central Excise Tarrif Act, 1985. On 18.2.2000, the Officers of Central Excise Department, Chandigarh inspected the factory premises of the respondent and found that 43.552 MTs of alloy steel flats and 11.998 MTs of alloy steel rounds were not recorded in the RG-1 register. The Managing Director of the respondent concern was unable to give a satisfactory reply for not recording the finished goods in the RG-1 register. It was stated by him that as he was away for few days, hence there was a negligence on part of the staff.

(3.) A show cause notice was issued to the respondent, who replied to the same. However, it was found that the respondent intended to clandestinely remove the finished product of alloy steel flats and rounds and accordingly, the order of confiscation of goods as well as fine and penalty was passed on 10.1.2001, by the Joint Commissioner (Annexure A-1). M/s Sadashiv Ispat Ltd. filed an appeal challenging the order passed by the Joint Commissioner, Central Excise in which the Commissioner, Central Excise, Chandigarh vide his order dated 22.5.2003, found that there was no intention on part of M/s Sadashiv Ispat Ltd. to clandestinely remove the finished product and hence the order of confiscation was set aside, however, the penalty was reduced from Rs.50,000/- to Rs.20,000/-. The aforementioned order was challenged by the Revenue by filing an appeal before the Tribunal which was dismissed vide order dated 22.12.2004 Annexure A-3.