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of <h1>Tribunal rejects steel ingot confiscation, reduces penalty for record non-maintenance.</h1> The Tribunal set aside the confiscation of excess steel ingots and redemption fine, as there was no evidence of removal without duty payment or ... Confiscation Issues involved: Appeal against Order-in-Appeal, confiscation of excess steel ingots, imposition of redemption fine and personal penalty under Central Excise Rules.Confiscation of Excess Steel Ingots:The appellant, engaged in manufacturing steel ingots, was found with 17.250 MT of steel ingots in excess during a physical verification, leading to confiscation and imposition of fines. The appellant argued that the excess stock was due to the absence of the excise clerk and gazetted holidays, with no evidence of clandestine removal or preparation for such removal. Citing precedents like Garden Silk Mills and M/s. Balls and Cylpebs, the Tribunal ruled that without proof of removal without duty payment or preparation for such removal, confiscation and redemption fine were not justified. The order of confiscation was set aside, and the personal penalty was reduced to Rs. 2,000 for non-maintenance of statutory records under Rule 226 of the Central Excise Rules.Imposition of Redemption Fine and Personal Penalty:The Assistant Commissioner had imposed a redemption fine of Rs. 30,000 and a personal penalty of Rs. 10,000 under Central Excise Rules. However, the Tribunal found no evidence that the appellants had removed goods without duty payment or made preparations for such removal. Relying on previous decisions, the Tribunal concluded that the confiscation and redemption fine were not sustainable. The personal penalty was reduced to Rs. 2,000 for non-maintenance of statutory records, in line with Rule 226 of the Central Excise Rules.Decision:The Tribunal set aside the confiscation of seized goods and the option to redeem on payment of fine, as there was no evidence of removal without duty payment or preparation for such removal. The personal penalty was reduced to Rs. 2,000 for non-maintenance of statutory records. The appeal was disposed of accordingly.
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