CCE Vs. MAGNUM STEELS LTD.

JUDGEMENT

(1.) THESE two appeals have been filed by the Revenue. The issue involved in both the appeals is common, hence these are being taken up together for decision under this common order.

(2.) IN Appeal No. E/1088/2004 -NB (SM), the facts in brief are: The Central Excise officers visited the premises of M/s. Magnum Steel Ltd. on 7.2.2002 and after physical verification of the stock of finished goods, excess quantity of the 48.200 MT of Twisted Bars and 51.21 MTs. of Flats was found than the recorded balance in daily production register. On inquiry, the representative of the manufacturer explained that the excess goods found on verification was due to incorrect accounting of the stock in register. After issue of the show cause notice, the original authority confiscated the seized goods and allowed the same to be redeemed on payment of a fine of Rs. 3 Lakhs and also imposed a penalty of Rs. 2 Lakhs on M/s. Magnum Steels Ltd. On appeal, the Commissioner (Appeals) under the impugned order set aside the confiscation of goods and reduced penalty to Rs. 10,000/ - (Rupees Ten Thousand Only).

(3.) IN Appeal No. E/1092/04 -NB (SM), the facts are that on 7.9.2001, the central excise officers visited the factory of M/s. Magnum Steels Ltd. and on physical verification of the stock with their daily production register, they found an excess stock of goods valued at Rs. 2,59,012/ -. The representative of M/s. Magnum Steel Ltd. stated that they are keeping the records not by physical weighment but on the basis of use of the raw materials. The goods found in excess were seized for which show cause notice was issued and the case was adjudicated by the Dy. Commissioner, who confiscated the goods but allowed these to be redeemed on payment of a fine of Rs. 30,000/ - and imposed a penalty of Rs. 15,000/ -. The Commissioner (Appeals) under impugned order set aside the confiscation of goods and reduced penalty to Rs. 10,000/ - (Rupees Ten Thousand Only).