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of <h1>Tribunal overturns confiscation & penalty for unrecorded transformers, reduces penalty due to record-keeping lapse.</h1> The Tribunal allowed the appeal filed by M/s. Western Transformer & Equipment (P) Limited against the order confiscating transformers and imposing a ... Confiscation and redemption fine Issues involved: Appeal against order-in-original for confiscation of transformers and imposition of penalty u/r 173Q of Central Excise Rules for contravention of Rule 173G.Summary:The appeal was filed against an order confiscating transformers and imposing a penalty on M/s. Western Transformer & Equipment (P) Limited for not entering the transformers in their statutory stock account. The appellants argued that the transformers were in the factory premises and no attempt was made to remove them without payment of duty. They cited relevant Tribunal decisions and contended that confiscation and penalty were unjust. The respondent, however, supported the order, stating that the transformers were coated to mislead officers. The Tribunal found discrepancies in the Additional Collector's observations and ruled in favor of the appellants, setting aside the confiscation and reducing the penalty due to extenuating circumstances of record-keeping lapse.The Tribunal noted that the confiscation and penalty were based on the transformers not being accounted for in the RG-1 register, citing contravention of Rule 173G without specifying the exact violation. The appellants argued that the Additional Collector's conclusions were unfounded, especially regarding the paint coatings on the transformers. They highlighted discrepancies in the observations and explanations provided by the appellants, ultimately supporting the appellants' case against the confiscation and penalty.The appellants admitted to lapses in maintaining the RG-1 record due to an injured clerk, leading to non-maintenance of records as required by Rules 53, 173G, and 226. The Tribunal acknowledged the extenuating circumstances and reduced the penalty imposed by the Additional Collector from Rs. 50,000 to Rs. 2,000. The appeal was partially allowed, granting the appellants consequential reliefs in light of the mitigating factors surrounding the record-keeping lapse.
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