Appeal outcome on seized Turbine and scrap under Rule 173Q: Confiscation overturned for Turbine, upheld for scrap.

The appeal was filed against the confiscation of a seized Turbine and scrap under Rule 173Q of the Central Excise Rules, 1944. The Turbine confiscation was set aside as defects were acknowledged, but there was no attempt to remove it without duty payment. However, the scrap confiscation was upheld as it was found outside the factory without proper records or duty payment. The penalty of Rs. 5,000 under Rule 173Q was upheld due to improper recording of both the Turbine and scrap. The appeal was disposed of accordingly.

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Issues: Confiscation of seized Turbine and scrap, redemption on payment of fine, imposition of penalty under Rule 173Q of the Central Excise Rules.

The appellant appealed against the order-in-original by the Additional Commissioner of Central Excise, which confiscated a seized Turbine and scrap under Rule 173Q of the Central Excise Rules, 1944. The Additional Commissioner allowed redemption of the Turbine on payment of Rs. 20,000 and the scrap on payment of Rs. 5,000, and imposed a penalty of Rs. 5,000 under the same rule. The appellant argued that the Turbine was tested and defects were recorded by an engineer, with no attempt to remove it without paying duty. The scrap was stored outside for segregation, and the appeal should be allowed. The Revenue contended that the Turbine was not entered in the RG 1 registers, and the scrap was removed without proper records, urging dismissal of the appeal.

Upon hearing both parties, it was noted that the Turbine was tested and defects were acknowledged, but there was no attempt to remove it without duty payment. Referring to a precedent, Garden Silk Mills v. CCE, where no removal attempt was made, confiscation was deemed unjustified. Hence, the confiscation of the Turbine was set aside. However, regarding the scrap, it was found outside the factory without proper records or duty payment, leading to the upheld confiscation. As both the Turbine and scrap were not recorded properly, the penalty of Rs. 5,000 under Rule 173Q was upheld. The appeal was disposed of accordingly.

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