COMMISSIONER OF CENTRAL EXCISE Vs. AGYA AUTO LTD.

JUDGEMENT

(1.) None has come present on behalf of the respondents. They have requested that matter may be decided on merits by taking into consideration their cross objections. Therefore, I proceed to decide the appeal after going through the cross objections and hearing ld. JDR.

(2.) In this appeal the Revenue has questioned the validity of the impugned order -in -appeal vide which the Commissioner (Appeals) has modified the order -in -original of the Assistant Commissioner by setting aside the confiscation of the unaccounted goods, redemption fine imposed for getting those goods redeemed and converted the penalty under Rule 226 of the Rules from that of Rule 173Q.

(3.) The facts borne out from the record are, that the respondents are engaged in the manufacture of leaf spring. On physical verification of the goods lying in their factory by the Central Excise Officer, on 15 -10 -97, 367 Nos. of leaf spring valued at Rs. 73,400/ - were found in excess over the balance recorded in the RG -I register. The goods were accordingly seized. After serving show cause notice on the respondents, the adjudicating authority ordered the confiscation of the goods, imposed redemption fine of Rs. 20,000/ - besides penalty of Rs. 5,000/ -under Rule 173Q. 3. The learned Commissioner (Appeals) through impugned order, by relying upon the ratio of law laid down in Bhilai Conductors (P) Ltd. v. CCE, Raipur - 2000 (125) E.L.T. 781, has set aside the confiscation of the goods, redemption fine as well as penalty under Rule 173Q. He has imposed penalty of Rs. 2,000/ - under Rule 226.