SAGE METALS LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants filed this appeal against the order -in -appeal dated 14 -7 -1998 passed by the Commissioner of Central Excise (Appeals).

(2.) BRIEF facts of the case are that the appellants are engaged in the manufacture and export of electrical wiring accessories. As the appellants were exporting the final product, they were allowed to import the inputs without payment of duty. On 6 -12 -1995, the unit of the appellants was visited by the revenue officers and on verification of inputs, it was found that 11897.1 kg. of zinc alloy ingots was found short as compared to their statutory record. During investigation, it was found that zinc alloy was imported by the appellants without payment of duty for use in the manufacture of electrical wiring accessories, which are to be exported. This quantity of zinc alloy was neither cleared on payment of duty nor found to be used in the manufacture of final product. Therefore, the duty was demanded on this quantity and penalty of Rs. 30,000.00 was also imposed under Rules 9(2) and 173Q of the Central Excise Rules.

(3.) LD . Counsel, appearing for the appellants, submits that the import of zinc alloy was made under various duty -free licenses and the export obligation has been carried out. Therefore, in such a situation, there is no justification for levying the duty or imposing the penalty. He, further, submits that the stock taking process was faulty as the ingots, in question, were not uniform in size and weight and the calculation in respect of shortage was made on estimate basis. He, therefore, prays that the appeal be allowed.