FLEX INDUSTRIES LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) This appeal has been filed by the appellants against the impugned Order -in -Original dated 7 -2 -2002 passed the Commissioner (Appeals) vide which he had affirmed the Order -in -original dated 25 -6 -99 of the Additional Commissioner.

(2.) The facts are not much in dispute. The factory premises of the appellants located at Noida was visited by the Officers of the Central Excise . on 19 -1 -98 and they conducted physical verification of the stock of inputs as well as finished goods lying in the factory. As a result of that verification/ inputs involving duty of Rs. 29,780,22 were found short, while finished goods (BOPP films) weighing 15387.800 Kgs. valued at Rs. 12,31,0247 - were found in excess of the recorded stock. The appellants however, debited the amount of Rs. 29,780/ - involved on the inputs found short vide PLA entry No. 297, dated 20 -1 -98. The excess stock of finished products was seized by the officers. The appellants were served with a show cause notice vide which duty demand of Rs. 29,780/ - on the inputs found short and removed without payment of duty, was demanded and confiscation of the goods found excess was also proposed besides imposition of penalty under Rule 173Q.

(3.) Since the appellants did not dispute the shortage of inputs as well as excess of the finished goods as detected by the officers of the central excise, at the time of the physical verification, they debited an amount of Rs. 29,780/ - through PLA on 20 -1 -98 which was involved on the inputs. Regarding excess quantity of the goods found in their stock than what was entered by them in the record, they alleged that out of the total stock of 120848.21 Kgs., the variation of 15387.8 Kgs. was negligible and should be ignored. The Additional Commissioner, however, confirmed the demand on the inputs found short and ordered the confiscation of the finished goods found excess. The Commissioner also appropriated the amount of Rs. 3,08,000/ - towards redemption fine on the goods from the security furnished by the appellants while getting the provisional release of the goods and further imposed penalty of Rs. 4,00,000/ - under Rule 173Q of the Rules, on the appellants.