2013 (11) TMI 1224

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....ocate For the Respondent : Shri R.K. Mishra, DR JUDGEMENT Per Rakesh Kumar: The facts giving rise to this appeal are as under:-            1.1 The appellant are manufacturers of sugar chargeable to central excise duty. On 5/6.1.2002, their factory was visited by the jurisdictional central excise officers and stock taking of the sugar....

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....es of the appellants, has alleged that 5577 bags bearing the markings of the previous sugar season i.e. 1997-98, 1998-99 and 1999-2000 are unaccounted production of those sugar seasons which have been kept in packed condition for clandestine removal and hence, these bags are liable for confiscation and that the bags of the same number i.e. 5577 of sugar season 2000-2001 involving duty of Rs.4,94,9....

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....his, 5577 bags of sugar were also ordered to be confiscated with option to be redeemed on payment of redemption fine of Rs.30 Lakhs. Besides this, penalty of Rs.5,00,000/- was imposed on the appellant under Rule 173 Q of the Central Excise Rules read with Rule 25 of the Central Excise Rules, 2001. On appeal being filed to the Commissioner (Appeals) against this order of the Asstt. Commissioner, th....

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....nd and penalty is not sustainable. 4. Shri R.K. Mishra, ld. Departmental Representative, defended the impugned order reiterating the findings of the Commissioner (Appeals) and also pointed that in the RG-1 register, the account of empty bags, has always shown the balance of empty bags as more than 5577. He, therefore, pleaded that there is no infirmity in the impugned order. 5. I have consid....