GANPATI SANGEMERMAR P. LTD. Vs. CCE, JAIPUR

JUDGEMENT

(1.) The appellant's factory was visited by the Central Excise Officers on 3.12.1999 and on verification of stock was found to have excess quantity of 447.039 of marble slabs as against the recorded balance in their RG I Register. On the above basis a show cause notice dated 17.12.99 was issued to them proposing confiscation of the said excess quantity seized by the Officer and imposition of personal penalty. After taking the appellants submissions in consideration, the Original Adjudicating Authority confiscated the goods with an option to the appellant to redeem the same on payment of redemption fine of Rs. 16,000/ -. Penalty of Rs. 15,000/ - was also imposed upon the appellant. On appeal against the above Commissioner (Appeals) upheld the order of confiscation reduced the penalty to Rs. 7,000/ -. Hence the present appeal.

(2.) I have heard Shri A.L. Mathur, ld. Consultant for the appellant and Shri J. Singh, learned JDR.

(3.) The appellant have strongly relied upon the Tribunals decision in the case of Bhilai Conductors (P) Ltd. Vs. CCE., Raipur reported in 2000 (91) ECR 569 (T) . Wherein it was held that if the final product is not accounted for in RG I record, the assessee is only liable to pay penalty of Rs. 2,000/ - under Rule 226 of Central Excise Rules. It is seen that admittedly the goods were still lying in the factory premises and there is nothing on record to show that the appellants were under any preparation to remove the goods clandestinely without payment of duty. The appellants reliance on the decision of the Tribunal in the case of Kirti Steel (P) Ltd. (1997 (18) RLT -139 (T) is well appropriate inasmuch as in that case it was held that non -accountal of finished goods found in excess of RG I balance within the factory and their being no intention or preparation of clandestine removal, confiscation of the goods was not justified. However, penalty was imposed in that case under Rule 226 for non -maintenance of record.