CCE Vs. CMI METAL RECYCLING (INDIA) PVT.

JUDGEMENT

(1.) The Revenue is aggrieved with the Commissioner (Appeals) order No. 64/2002 (M -II) dated 21.6.2002 in which he has held that the goods which were confiscated and redemption fine imposed were later exported. He has come to the conclusion that in such circumstances, Rule 173Q is not attracted and penalty imposed by the original authority is required to be set aside as no duty was liable to be paid on exported goods.

(2.) The appellants are a 100% EOU. They had cleared certain goods for domestic sales without payment of duty which was seized and handed over to assessee for safe custody. Later, they exported those goods and also paid redemption fine. In that circumstance, penalty imposed under Rule 173Q was set aside by the Commissioner which is the ground of appeal before this bench.

(3.) Revenue contends that once there was contravention committed the appellants in removing the goods without payment of duty, penalty under Rule 173Q is leviable. However, it is admitted in the appeal memo that no duty is required to be paid as the goods had been exported. It is also stated that RG.1 register was not maintained for the goods and thus penalty cannot be set aside.