COMMISSIONER OF CENTRAL EXCISE Vs. SHANTI FASTNERS

JUDGEMENT

(1.) THE Revenue has filed this appeal under Section 35G of The Central Excise Act, 1944 against the order dated 23.12.2004 passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi raising the following substantial question of law:

(2.) THE brief facts of the case leading to the filing of this appeal are that on 18.12.2000, Central Excise Preventive Staff, Jalandhar Division seized, in transit, 40 bags of Hex Bolts valued at Rs. 37,000/ - on the ground that the same were being removed in a clandestine manner by the assessee without payment of duty and without issuance of any bill or covering document. In follow up action, the staff visited the factory premises of the assessee and seized 669 bags of Hex Bolts valued at Rs. 6,18,925/ - on the ground that same were produced and kept unaccounted for removing clandestinely at a later stage. Accordingly, the assessee was issued show cause notice dated 12.2.2001 proposing confiscation of seized goods valued at Rs. 6,55,825/ - and imposition of penalty. The assessee submitted reply to the show cause notice stating therein that the assessee is not holding Central Excise Registration as the value of home clearances during 1999 -2000 was Rs. 39,78,489/ - and during 2000 -01 upto 18.12.2000 was Rs. 59,94,360/ - and thus, the value of home clearances were less than the exemption limit of Rs. 50 lacs and Rs. 1 crore respectively as envisaged under Notification No. 18/99 -CE and 8/2000 CE. Since the assessee was not required to maintain statutory Central Excise stock register, there was no ground to invoke the penal provisions against the assessee. The adjudicating Authority vide its order dated 18.2.2002 imposed a redemption fine of Rs. 30,000/ - in lieu of confiscation of the said goods and also imposed a penalty of Rs. 20,000/ - under Rule 173Q of the Rules upon the assessee.

(3.) WE have heard learned Counsel for the appellant -revenue and perused the record.