Appeal successful due to improper inspection stage, non-modvatable item, and pre-duty payment.

The appeal was allowed as it was found that certain goods had not reached the required stage for inspection, making confiscation and penalty unjustified. Additionally, the confiscation of excess cement was deemed unwarranted as it was not a modvatable item. Duty payment prior to the show cause notice for specific items also led to the setting aside of penalties and interest charges. The decision was in favor of the appellant, with the impugned order being overturned for various items, including PSCC poles, cement, and duty-paid goods.

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Issues involved: Confiscation of goods found short and not recorded in the books u/s OIA No. 23/2005-C.E., dated 1-11-2005.

Summary:

1. The appellant argued that for certain items, goods had not reached the RG I stage as inspection was pending by APSPDCL. Referring to a similar case, the appellant contended that confiscation and penalty after a lapse of six months were not justified.

2. Regarding excess cement, the appellant contended that since cement was not a modvatable item, its confiscation was not justified, citing a relevant case law.

3. The appellant claimed that duty had been paid before the show cause notice for certain items, relying on a Karnataka High Court judgment to argue against the levying of penalty and interest.

4. The learned DR supported the Commissioner's findings.

5. After careful consideration, it was established that the PSCC poles had reached RG I stage only after inspection by APSEB. The proceedings initiated after six months were deemed unsustainable. Similarly, for non-modvatable cement and items where duty was paid before the show cause notice, the impugned order was set aside, and the appeal was allowed with consequential relief if any.

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