PFEDA SYNTHETICS (P) LTD. Vs. CCE

JUDGEMENT

(1.) THE appellant filed this appeal against the order -in -appeal dated 12.9.1997 passed by the Commissioner (Appeals) Central Excise, Ghaziabad. The facts of the case are as under: The appellants are engaged in the manufacture of P.U. components of Automotive and furniture industries. On 24.8.1995 the officers of Central Excise visited the factory of the appellants and certain finished goods were found in excess and certain goods were found short as compared to Book balance shown in the RG 1 Register. The excess goods found in the Store Room and in the finishing room of the factory valued at Rs. 3,38,085/ - were seized. A show cause notice was issued and the adjudicating authority ordered confiscation of the seized goods valued at Rs. 3,38,085/ - under Rule 173Q and given an option to redeem the same on payment of redemption fine of Rs. 50,000/ -. The demand of Modvat credit in respect of the inputs found short was also confirmed and demand of duty of Central Excise in respect of finished goods found short was also confirmed. A penalty of Rs. 50,000/ - under Rule 57Q was also imposed. The appellants filed an appeal and the Commissioner (Appeals) in the impugned order upheld the finding of the adjudication order. However, reduce redemption fine to Rs. 25,000/ - and penalty to Rs. 20,000/ -.

(2.) LEARNED Counsel appearing on behalf of the appellants submits that the finished goods found in excess in RG 1 record were still lying in the factory and there is no evidence on record to show that appellants removed these goods without payment of duty or made any attempt to remove the goods without payment of duty. He submits that in this situation the Tribunal in the following cases held that when the goods are found in factory and no attempt to remove without payment of duty was made the confiscation and redemption fine is not to be imposed. He relied upon the decisions in the cases as under:

(3.) HEARD both sides.