TaxTMI 
TaxTMI 
1992 (4) TMI 129
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....ellants' Company under the provisions of the Rule 9(2) of the Central Excise Rules, 1944. He also found that the duty liability on the excess road rollers was worked out to Rs. 2,95,999.50 and considering the seriousness of the offence the learned Collector also imposed a penalty of Rs. 50,000.00 on the appellants. The brief facts of the case as per the Department are that the Central Excise Officers of Headquarters, Anti-Evasion Unit, Calcutta-11 Collectorate paid a surprise visit to the factory premises of M/s. Britania Engineering Products & Services Ltd., Titagarh, 24 Parganas (N) on 26-9-1988. They physically verified the entire stock and finished excisable goods stored by the appellants in presence of their representatives and indepen....
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.... goods on 26-9-1988. This is a clear contravention of the provisions of Rule 9(1), 173F, 173G(1), 173G(2), 173G(4) and 226 of the Central Excise Rules, 1944. 3. A show cause notice was issued to the appellants on 23-3-1989 for confiscation of Road Rollers, totally valued at Rs. 18,28,749.75 involving Central Excise duty of Rs.'2,95,999.50 under Rule 173Q of Central Excise Rules, the notice also contained proposed demand of duty of Rs. 35382.90 on one Tea Packer machine (complete) and one small Diesel Road Roller found missing, though entered in RG-1 Register. 4. The appellants replied the show cause notice and stated that Road Rollers will be entered in the RG-I register only after full painting. It was also submitted that the complet....
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.... is concerned, Shri K.P. Dey, learned Counsel, stated that after final inspection and test of goods manufactured they are painted to avoid rust. It was also stated that the painting is the last stage of manufacture which is done on the last day of the month or the day before if the last day is a holiday or weekly off day. He also submitted that this was the long-standing practice of the appellants' Company and the Central Excise Officers had not raised any objection. 7. The learned JDR, Shri A. Chowdhury stated that immediately on manufacture of the road rollers the same should have been entered in the RG-I register. It was his contention that painting is not an integral part or the manufacture. He also stated that there is nothing to sh....
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....w that the Department had allowed them to account in the RG-I Register about the manufacture of these goods on the last day of each month. However, the argument of the appellants that the manufacture is completed only after painting, was not considered by the Adjudicating Authority and we give the benefit of doubt to the appellants in this regard. On that count, the appellants cannot be penalised under the Rule 173Q of the Central Excise Rules, 1944. However, the Adjudication Order itself shows that the duty liability was worked out to 295,999.50, in this regard, which the appellants themselves did not dispute. The Point No. (i) is disposed of accordingly. 9. As far as the Point No. (ii) is concerned, it is seen that at the time of visit....
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.... Serial No. as 04 (vide page 189 of production figure file tendered by us on 26-9-1988 SL No. 5/BE, Xerox copy enclosed) and recorded in RG-I accordingly on 30-11-1987 i.e. the last day of the month. But during physical demonstration of the said Road Rollers before the consignees in the month of August, 1988, some disturbance in the engine was found and hence dismantled for inspection and rectification of defects. A xerox copy of the Stocktaking Report is enclosed herewith for your kind perusal which also shows the correctness of our statement. The said Road Roller is still lying in our factory in dismantled condition." It is thus dear that in the reply to the show cause notice, they had admitted that these Road Rollers were manufactured....