2007 (4) TMI 590 - AT - Central Excise

Court Upholds Goods Confiscation, Reduces Fine

The court upheld the confiscation of unaccounted goods due to non-accountal of excess stock in the factory premises. The redemption fine was reduced from ... Confiscation, penalty and redemption fine Issues: Non-accountal of excess stock in factory premises leading to confiscation, waiver of redemption fine and penalty.The judgment deals with an appeal against the order of the Commissioner (Appeals) regarding the non-accountal of a significant quantity of ceramic tiles in the factory premises. The appellant claimed the omission was due to a counting mistake and the recent start of the unit, denying any intention to clear goods without duty payment. The advocate argued for the waiver of redemption fine and penalty, emphasizing the absence of evidence for clandestine removal. On the other hand, the SDR contended that such a substantial unaccounted stock could not be a mere clerical error and supported the imposition of redemption fine and penalty. The judge considered both sides' submissions, finding the explanation for the non-accountal unconvincing but acknowledging the lack of evidence for clandestine removal. The judge upheld the confiscation of unaccounted goods and deemed the penalty warranted. However, showing leniency, the redemption fine was reduced from Rs. 1 lakh to Rs. 25,000, while the penalty of Rs. 5,000 was upheld as not excessive. Ultimately, the appeal was partly allowed based on the mentioned terms.