Appeal success: Duty, confiscation, credit issues overturned. No penalty imposed.

The appeal challenged duty confirmation, confiscation of goods, disallowance of cenvat credit, and imposition of penalty. The duty confirmation was deemed unsustainable due to lack of evidence of evasion and proper physical verification. Confiscation of goods was rejected as objections were not raised earlier, and no evidence of clandestine removal was found. Disallowance of cenvat credit on unprinted glass bottles was unjustifiable. No penalty was imposed, and the impugned order was set aside with consequential relief granted to the appellants.

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Issues:
Appeal against confirmation of duty, confiscation of goods, imposition of redemption fine, disallowance of cenvat credit, and penalty.

Confirmation of Duty:
The appeal contested the duty confirmation due to a shortage of decorated bottles, but the appellants argued that the quantity of broken bottles cleared under duty paid invoices was not considered. The appellants provided challans as evidence of cullets cleared against duty paid invoices. No evidence of evasion was found, and no clandestine removal was alleged. Lack of proper physical verification of stock supported the appellants' claim. The duty confirmed based on eye examination was deemed unsustainable.

Confiscation of Goods:
Confiscation of decorated, reannealed, and unbranded bottles was challenged. The appellants were engaged in job work and printing on plain glass bottles. They followed a documented procedure for receiving, clearing, and reannealing bottles. The Revenue's objection to this procedure was rejected as no prior objection was raised. No evidence of clandestine removal post-reannealing was found. Confiscation based solely on production planning report without physical verification was deemed unsustainable.

Disallowance of Cenvat Credit:
Disallowed Modvat credit on unprinted glass bottles received under duty paid invoices was challenged. The appellants were entitled to claim credit on duty paid unprinted glass bottles as inputs. The disallowance was deemed unjustifiable under the law.

Imposition of Penalty:
No penalty could be imposed on the appellants based on the findings. The impugned order was set aside entirely, and the appeal was allowed with consequential relief as per law.

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