HINDUSTAN FOILS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) This appeal has been filed by the appellants against the impugned Order -in -Appeal dated 22/28.3.2002 vide which the Commissioner (Appeals) has affirmed the Order -in -Original in respect of the duty demand, but reduced the penalty from Rs. 1 lakh to Rs. 25,000 on the appellants.

(2.) The facts are not much in dispute. The factory premises of the appellants was visited by the Central Excise officers on 15.11.91. The stock verification of the finished goods and raw materials was conducted by those officers and goods involving Central Excise duty of Rs. 91,875 were found short. Shri A. Bose, Commercial Manager accepted the shortage and debited the duty in the RG 23A Part II register, show cause notice was, however, issued to the appellants for payment of duty of Rs. 51617 in respect of the goods cleared without issuing gate pass and also for recovery of Rs. 40,258 which they had availed as modvat credit on the raw materials, cleared by them without payment of duty and without obtaining necessary permission, Penalty was also proposed to be imposed on them. The adjudicating authority confirmed the duty demand in all of Rs. 91,847.77 and imposed penalty of Rs. 1 lakh on the appellants. The Commissioner (Appeals) had confirmed the duty demand, but reduced penalty to Rs. 25,000.

(3.) I have heard both the sides, The perusal of the record shows that Shri A. Bose, Commercial Manager of the appellants admitted the shortage and even voluntarily debited the duty in RG 23A Part II register. The appellants no doubt took the plea that his statement was recorded under duress. But in my view, the same has been rightly rejected by the authorities below. The admission on the part of Shri A. Bose was enough for the authorities below to confirm the duty demand on account of shortage of the goods.