KANTHAL INDIA LTD Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THIS is an appeal filed by the assessee against the impugned order dated 7 -1 -1998 passed by the Commissioner of Central Excise (Appeals), Allahabad.

(2.) WHEN the matter was called none appeared on behalf of the appellants in spite of the notice. Heard Shri Sanjeev, Srivastava, learned JDR for the Revenue and on perusal of the records I proceed to pass this order.

(3.) THE appellants are engaged in the manufacture of resistance wire, an excisable product and are registered under Rule 174 of the Central Excise Rules, 1944. On 8 -6 -1996, the Central Excise Officers of Varanasi Division visited the appellants' factory premises and conducted checking of stock of raw materials and finished goods. During the course of checking, 747.715 kgs. of Kanthal L.T. hardwire being packed in 54 boxes were found lying on production floor of the unit which were found to be unaccounted for in any of the Central Excise records and as such, the goods being in excess than what was recorded in the RG 1 Register were seized by the officers. Show cause notice was issued accordingly asking the appellants as to why 747.715 kgs. of Kanthal LT hardwire may not be confiscated under Rule 173Q and penalty be not imposed on them under Rule 226 of the Central Excise Rules, 1944. Show cause notice was duly answered by the party pleading many points and particularly that before removal of the goods it is their normal practice to take out the desired quantity of finished goods from finished goods store and bring the same in the packing space according to the requirements of the customers. After packing them they prepare the gate pass and make debit entry of Central Excise duty in PLA and RG 23 Part III Register. On the close of the day, the balance of quantity removed is shown in RG 1 Register. The Assistant Commissioner who adjudicated the proceedings, after taking into consideration the facts and circumstances and submissions made by the party, ordered confiscation of 747.715 kgs. of Kanthal LT hardwire under Rule 173Q of the Central Excise Rules. However, the party was given an option to redeem the goods on payment of redemption fine of Rs. 10,000.00 in lieu of confiscation, in addition to imposing penalty of Rs. 2500.00 under Rules 173Q and 226 of the Rules jointly.