TIRUPATI CIGARETTES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellant filed this appeal against adjudication order passed by the Commissioner of Central Excise whereby the unaccounted goods such as cigarette tissue paper, filter tip paper, filter rods were confiscated and released on payment of redemption fine. A penalty of Rs. 10,000/ - was also imposed on the appellant.

(2.) THE brief facts of the case are that on 4 -2 -1995, the officers of Revenue visited the factory of the appellants. On verification of the record, it was found that there were certain discrepancies in the stock of packing material and certain other goods which are used in the manufacture of cigarettes. A show cause notice was issued to the appellant for confiscation of unaccounted goods as the appellants contravened the provisions of Rule 94 read with Rule 226 and 209 of Central Excise Rules.

(3.) THE contention of the appellant is that on the date of visit i.e. 4 -2 -1995 only cut tobacco was prescribed as principal raw material under Rule 55 of Central Excise Rules and cigarette manufacturer has to maintain the proper record as prescribed in respect of the principal raw material i.e. cut tobacco only. The contention is that only on 10 -4 -1995 a Trade Notice No. 37/95 was issued whereby certain other goods used in the manufacture of cigarettes were also prescribed as principal raw material and manufacturer has to maintain the prescribed record. Prior to this date only cut tobacco was prescribed as principal raw material and there was no excess or shortage in stock i.e. cut tobacco, therefore, the confiscation of the other materials which were not prescribed the principal raw material under Rule 55 of Central Excise Rules is not sustainable.