Excise duty on billets confirmed where seized goods were consumed in manufacture without entry or duty-paid clearance documents.

Excise duty on 17,943 kg of billets was confirmed because the seized goods had been handed to the assessee for safe custody, were later found to have been used in manufacture without permission, and there was no evidence of entry in the RG-1 register or clearance on duty-paid central excise documents. The later order setting aside the seizure did not affect the liability because it was passed after the relevant inspection. The different treatment of the remaining billets rested on separate factual findings and did not undermine duty and penalty for the seized quantity.

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Issues: Whether excise duty was correctly confirmed on 17,943 kg of billets seized earlier and later found not to be available in the assessee's custody, and whether the Tribunal erred in sustaining duty and penalty on that quantity.

Analysis: The quantity of 17,943 kg of billets had been seized earlier and handed over to the assessee for safe custody. The material on record, including the statement of the authorised representative, established that the billets were utilised in manufacture without permission. There was no evidence that the goods so consumed were entered in the RG-1 register or cleared on payment of duty under central excise documents. The later order setting aside the seizure did not assist the assessee because it was passed after the inspection in question. The differential treatment given by the Tribunal to the remaining quantity of billets was based on distinct factual findings and did not create any inconsistency in the confirmation of duty for the seized quantity.

Conclusion: The confirmation of excise duty and penalty on 17,943 kg of billets was upheld, and the question of law was answered against the assessee and in favour of the Revenue.

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