R.T. PACKAGINGS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) WHEN the application for stay came up for hearing it was agreed by both the sides that the appeal itself can be disposed of. We, therefore, heard the learned Counsel for the appellant and the learned Departmental Representative on the contentions raised in the appeal.

(2.) THE appeal at the instance of the assessee is directed against the order passed by the Commissioner of Central Excise (Appeals), New Delhi vide Order -in -Appeal No. 857 -CE/DLH 2001, dated 20 -9 -2001. The Commissioner (Appeals) affirmed the findings of the adjudicating authority.

(3.) ON 17 -9 -97 during the visit by Central Excise Officers in the factory premises of the appellant, unaccounted stocks of finished goods valued at Rs. 6,94,280/ - was detected and seized. On further scrutiny of documents it was noticed that an extra amount of Rs. 70,000/ - had been collected by the assessee on account of cylinder/proofing charges by way of debit notes and no duty was paid on this amount. A show cause notice was issued proposing to confiscate the excess stock and demanded duty leviable on the extra amount collected by the assessee. The adjudicating authority found that the excess stock found was not liable to be confiscated in the light of the contentions raised by the assessee that the plastic films found excess are still to undergo other processes and at this stage was not chargeable to duty. Since the department could not produce any material controverting the submission of the assessee it was held that the goods had not reached the finished stage. Therefore, proposal for confiscation was not confirmed.