KAKKAR COMPLEX STEELS (P) LTD. Vs. CCE

JUDGEMENT

(1.) M/s. Kakkar Complex Steels (P) Ltd. are challenging the penalty imposed on them and redemption fine demanded from them.

(2.) Shri Gautam Kakkar, Director of the Appellant company, mentioned that the Appellants manufacture iron and steel ingots; that the Central Excise Officers on 21.2.2000 visited their factory and found 14.850 MT steel ingots have not been registered in the RG -1 register. The Additional Commissioner had confiscated the said ingots with an option to redeem the same on payment of redemption fine of Rs.10,000/ - and had imposed penalty of Rs.5000/ - which has been confirmed by the Commissioner (Appeals) under the impugned Order. He, further, submitted that Shri Kulwant Sharma, Accounts Manager, whose statement was recorded by the Central Excise Officers on the spot had explained that the difference of 14.850 MT between RG -1 stock and physical stock was on account of non -entering of the production of 19th and 20th February, 2000; that the production of these two days could not be entered on account of Administrative Office being closed, these being Saturday and Sunday; that as the officers had visited their factory premises in the morning hours on 21.2.2000 the production cannot be entered in RG -I register. He relied upon the decision of the Tribunal in the case of Sumit Industries Ltd. v. CCE, Surat - 2004 (164) ELT 335 (Tribunal) wherein it has been held that "Penalty should not be ordinarily imposed unless there is a deliberate defiance of law or contumacious or dishonest conduct or a conscious disregard to an obligation is established in the facts of a case."

(3.) Countering the arguments Shri V. Valte, Ld SDR, submitted that the orders passed by both the lower authorities are proper and legal as undisputedly the physical stock of ingots was more than the stock reflected in RG -I register and as such there was contravention of provisions of Central Excise Rules.