2011 (7) TMI 608

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.... the factory of the premises, the Central Excise officers found cut tobacco weighing 609 Kgs. and packing material i.e. tins in excess of the recorded balance in the Cenvat statutory records. On a reasonable belief that the said goods are finished goods and packing materials, are liable for confiscation, goods were seized by the panchnama dated 8.6.2001. Statement of authorised signatory was also recorded. A show cause notice dated 6.12.2001 was issued for confiscation of the said cut tobacco and the packing material under Rule 173 Q of Central Excise Rules 1944 and for denial of modvat credit on the packing material i.e. tins which was found in excess. The appellants contested the show cause notice before the adjudicating authority. The ad....

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....ed on the inputs which were found in excess in the factory premises. 4. Learned DR reiterates the findings of the learned Commissioner (Appeals). 5. Considered the submissions made by both sides and perused the records. 6. It is not in dispute that the goods which were seized vide panchnama were cut tobacco, metal tins, caps, laminated pouches and aluminium lids. It is also not in dispute that except for cut tobacco, on all other items, the Cenvat credit was availed as packing material. It is also undisputed fact that the appellant is registered with Central Excise for manufacturing of chewing tobacco. 7. It can be seem that both the lower authorities have mis-directed their findings without appreciating the correct provisions of law. ....

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.... inputs were found in excess of the recorded balance in the RG 23 Part I register meant for modvatable inputs. No other evidence has been brought on record by the appellant that the said inputs were purchased against some non-modvatable invoices and Modvat Credit has not been availed on the said inputs found in excess in their factory. Since the goods in question were found in excess of the recorded balance in the Central Excise Records, the goods were correctly confiscated by the adjudicating authority. " It can be seen from the above reproduced findings that the learned Commissioner (Appeals) has considered the cut tobacco weighing about 609 Kg. as finished goods. On perusal of the panchnama, we find that panchnama talks about 'cut tobac....