2011 (4) TMI 893 - AT - Central Excise

Tribunal Upholds Commissioner Decision on Accounting Discrepancies

CCE, Kanpur Versus M/s. Om Glass Works Pvt. Ltd

CCE, Kanpur Versus M/s. Om Glass Works Pvt. Ltd - TMI Issues:Department's appeal against the Commissioner (Appeals) order regarding duty confirmation, penalty imposition, and improper accounting.Analysis:The appeal pertains to a case where the department challenged the Commissioner (Appeals) order concerning duty confirmation, penalty imposition, and accounting irregularities. The respondents' factory was inspected, revealing a shortage of 64 MT of soda ash. The authorized signatory admitted to goods being cleared without invoices or duty payment, which was later rectified. A show cause notice was issued, proposing duty confirmation and penalty imposition. The original authority upheld the demand and penalty, which was partially overturned by the Commissioner (Appeals), who imposed a nominal penalty for accounting lapses.Upon review, the Tribunal noted discrepancies in the show cause notice, lack of reference to stock records, and delayed issuance. The respondents argued that the notice was flawed as raw material issue during a specific period was overlooked. The Commissioner (Appeals) found the inputs and RG-1 registers updated till certain dates, indicating regular production. The Tribunal concurred with the Commissioner's factual findings, emphasizing proper record interpretation over the signatory's statement. Notably, no evidence was presented to challenge the Commissioner's conclusions, with earlier submissions supporting the production and accounting records' integrity.In conclusion, the Tribunal dismissed the department's appeal, upholding the Commissioner (Appeals) decision based on accurate record assessment and minor accounting discrepancies. The judgment emphasizes the importance of statutory records in determining liability over verbal statements, ultimately affirming the nominal penalty for improper accounting practices.