2015 (11) TMI 1334

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....r and are engaged in the activity of conversion of copper ingots into copper wire rods. They are procuring goods or raw materials job worker challan under Rule 4(5) A of Cenvat Credit Rules, 2004 and after processing, the goods were cleared to the principal manufacturer. On 27.6.2007, a search was conducted in the premises of both the appellants. Stock taking was done, on eye estimation, it was revealed that certain copper ingots were found in excess and certain copper wire rods were also found in excess. Therefore, it was alleged that appellant has not recorded the said goods in their statutory records. In these circumstances, these goods are liable for confiscation and consequently redemption fine and penalties can be imposed. In these ci....

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....rovisions of Rule 25 of Central Excise Rules, 2002 are rightly invoked. 5. Heard the parties. Considered the submissions. 6. In these cases, the facts are not in dispute that certain raw material were found in excess and certain finished goods were also found in excess and the appellants are job workers. As these raw material and finished goods were found in excess, therefore, provisions of Rule 15 of Cenvat Credit Rules, 2004 were attracted along with the provisions of Rule 25 of Central Excise Rules, 2002. Therefore, I have to examine whether these Rules are applicable to the facts of this case or not. For better appreciation, Rule 15 of the Cenvat Credit Rules, 2004 is extracted herein below:-  "[RULE 15. Confiscation and penalt....

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....ise Officer following the principles of natural justice.]" 7. On plain reading of the said Rule, the Rule is applicable when the assessee takes Cenvat Credit on inputs/ capital goods. The facts of the case are such that the appellants have not taken cenvat credit on inputs. Therefore, Rule 15 of the Cenvat Credit Rules, 2004 is not applicable to the facts of the case as appellant have not taken any cenvat credit either wrongly or in contravention of the provisions of any Rule. Therefore, I hold that goods in question are not to be held liable for confiscation under Rule 15 of the Cenvat Credit Rules, 2004. 8. The provisions of Rule 25 of Central Excise Rules, 2002 were also attracted for confiscation of the goods in question. The provisio....