PEPSI FOODS LTD. Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) IN this application, M/s. Pepsi Foods Ltd. have requested for waiver of predeposit of penalty Rs. 5 lakhs, confirmed by the Commissioner (Appeals).

(2.) SHRI M.P. Devnath, learned Advocate, submitted that the potato chip, manufactured by the Applicants, attracted excise duty with effect form 1.3.1997 only; that a penalty of Rs. 5 lakhs has been imposed by the Dy. Commissioner, Central Excise, which has been confirmed by the Commissioner (Appeals), under the impugned Order for non -accountal of production of potato chips in R.G.1 register during the period 1.5.1997 to 8.5.1997; that entries could not be made as the person incharge of maintenance of RG1 Register went on leave; that the goods produced were also accounted for in their transfer slips which are the basic documents for making entries in RG1 register; that in the absence of mensrea on their part, imposition of penalty and confiscation of goods are not sustainable.

(3.) OPPOSING the prayer, Shri Sumit K. Das, learned D.R., submitted that it has not been disputed by the Applicants that the excisable goods manufactured by them during the period 1.5.97 to 8.5.97 were not entered into statutory records which is a legal requirement; that the value of the excisable goods which were not accounted for was Rs.20,37,016/ - and as such the imposition of penalty and confiscation of goods was justified.