2001 (12) TMI 293

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....000/- on the appellants. 2. The facts are not much in dispute. Appellants were engaged in the manufacture of various types of wire and cable of copper/aluminium. They were supplying those wires and cables to the Indian Railways. The Officer of anti-evasion visited their factory premises on 10/11-9-96 and resumed their RG-1 register. During the physical verification of the stock on 6-9-96, 32 kms. cable of 2 x 25 square metre valued at Rs. 11,20,000/- involving Central Excise duty of Rs. 2,80,000/- which were manufactured in August, 1996 was found in excess of the balance recorded in RG-1 register. This discrepancy was admitted by the partner of the company. The excess goods were seized under Section 110 of the Customs Act as made ap....

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....e has not been disputed by the ld. Counsel. But the facts and circumstances brought on record did not warrant for drawing any inference against the appellants that they had any mala fide intention in not recording the goods in the RG-l register. The appellants were admittedly manufacturing and supplying the goods to the Indian Railways. The supply was made to the Indian Railways only after the inspection by the concerned Officer. Even the Commissioner (Appeals) in the impugned order has observed that the goods were manufactured for the Indian Railways and had been inspected by the Railways on 9th and 10th Sep., 1996 and thus could not be cleared without payment of duty. In face of these observations, no such inference could be legally drawn....