2001 (10) TMI 191

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.... duty and penalty, I take up the appeal itself with the consent of both the sides. 2. The appellants' factory was visited by the officers on 8-1-98, who conducted various checks and verifications. It was noticed that the appellants' final product i.e. Phenol Formaldehyde was in excess of balance as recorded in their RG 1. Corresponding shortage of raw material was also found in RG 23A Part I Re....

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.... of duty of Rs. 26,654/- on the final product alleged to have been removed without payment of duty and imposition of personal penalty. The said show cause notice culminated into the impugned order passed by the Additional Commissioner of Central Excise, Bolpur. Vide the said order, demand of duty was confirmed against the appellants along with imposition of personal penalty of identical amount and....

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....ards. He submits that the shortages of the final product were related to excess production, which has occurred on account of non-making of entries in their records. He submits that there is no evidence showing that the appellants had any intention to remove the said goods without payment of duty. As regards the confirmation of demand of duty, he submits that the same is based on input/output ratio....

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....re is nothing on record to show that such excess quantity of finished goods was to be removed by the appellants without payment of duty. As such, I hold that the confiscation of the same was not justified. However, as the appellants have failed to maintain the records properly, I hold that the imposition of personal penalty of Rs. 2,000/- upon them would meet the needs of justice. 7. As regards....