TaxTMI 
TaxTMI 
1990 (11) TMI 241
X X X X Extracts X X X X
X X X X Extracts X X X X
....They were being guided by the Excise Officers incharge, specially in regard to the format of Excise records to be maintained such as R.G. register etc. 4. Throughout the material time, the dutiable product manufactured by the appellants was "branded" chewing tobacco (Quiwam), falling under Tariff Item 4-II(5) and with Notification No. 34/79-CE., dated 1-3-1979 (as amended) was applicable. The unit was under "physical control" i.e. subject to 100% checks. And removal of goods could take place only after physical check not only of the product, but also of the day to day records maintained for the purpose. 5. Throughout the material time, the Excise authorities incharge of the factory were aware that the records were being maintained in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... on payment of full duty leviable thereon. In addition, the Collector imposed the maximum penalty of Rs. 2,000/- permissible under Rule 226 of the CER being the only provision under which the penalty could be imposed. 8. In the light of the above submissions, it was urged that the impugned goods were not liable for confiscation under Rule 226 because the said provision authorises confiscation only of "goods of which due entry" has not been made and the provision also takes note of the fact that the required particulars of the goods manufactured had to be entered "within the time prescribed in the relevant rule". 9. In this case, out of the total quantity of 30,445 pieces due entry as "opening balance" had been made of 15,000 pieces in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....adjudication order of the Collector leading to the conclusion that the lapses if any were of the technical nature, and had in fact been acquiesced in by the Excise Authorities instead of taking corrective action at the earliest opportunity. 12. The learned DR stated that from a perusal of the impugned adjudication order it will be seen that the adjudicating authority had dealt with all the aspects of the case and the submissions made by the appellant before him and has given his considered findings on each allegation/issue and thereafter passed a reasoned order. The party has also clearly admitted that they were not storing the goods in the bonded store room before clearance and were clearing the goods without bringing them in the bonded....
X X X X Extracts X X X X
X X X X Extracts X X X X
....llants or the visiting officers. The commodity was under physical control and the clearance was required to be physically supervised by an officer who was expected to check these records and the entries therein undoubtedly the goods are required to be properly stored in the approved premises and accounted for properly, in the prescribed records. However, when the mistake is that of both the sides and is more that of 'form' than substance it could only be considered as a technical lapse. 16. We take particular note of the fact that the Collector has himself observed that "fact of clandestine removal has not been proved"; And further that "15000 bottles were in fact still lying in the finishing room and had not been removed"; And still fur....