BAJPUR COOPERATIVE SUGAR Vs. CCE MEERUT

JUDGEMENT

(1.) THIS appeal has been preferred by the appellants against the impugned order in appeal dated 23.8.99 passed by the Commissioner (Appeals) vide which he upheld with minor modification the order in original of the Assistant Commissioner who imposed penalty of Rs. 56,894/ - on the appellants for violation of the Rules 226 and 173 -Q the Central Excise Rules besides imposing redemption fine of Rs. 5000/ -.

(2.) THE facts giving rise to this appeal may briefly be stated as under:

(3.) THE appellants were engaged in the manufacture of cane sugar and molasses falling under Chapter 17 of the CETA. On 17.10.92 the preventive Officers of Central Excise Officer, Rampur visited their unit and checked physical stock of molasses stored in three steel tanks. the quantity of molasses in these tanks was measured by taking a dip reading and then converting into quintals with the help of a conversion chart maintained by the appellants. On comparison of that quantity with the quantity recorded in RG. 1. 3298.197 Qtls. molasses were found in excess which wee not accounted for in that register. Accordingly, show cause notice dated 1.12.92 was issued to the appellants for confiscation of the excess molasses and for imposition of the penalty on them. On receipt of their reply to that notice within they denied the correctness of the mode adopted by the officer for determining the quantity of molasses stored in the tanks. But the Assistant Commissioner did not agree with their version and through order in original, ordered confiscation of the excess molasses with option to get the same redeemed on payment of redemption fine of Rs. 5000/ - and also imposed penalty of Rs. 56,894/ - on the appellants.