Customs, Excise and Gold Tribunal - Mumbai
Maharashtra Magnet Wire vs Commissioner Of Central Excise on 9 December, 2003
ORDER S. S. Sekhon, Member (T)
1. "...... On 30.3.2000 the Preventive Officers of Central Excise Aurangabad visited the factory of the appellant and conducted stock verification. The stock of final products stored in the BSR tallied with the closing balance shown in the RG1 register. However, the search of the Administrative Building of the factory revealed a stock of 503 Boxes of Super Enamelled Copper Wires, which was stored in the locked room situated in the said administrative building. All the boxes were affixed with stickers "Classique Winding Wires, M/s. Bhilai Conductors Pvt. Ltd. (Ancilliary to Bhilai Steel Plant, Village: Anjora, Dist. Rajnandgaon, M.P.)" The officers also recovered 4 invoices issued by M/s. Bhilai Conductors Pvt. Ltd. in the name of M/s. Crompton Greaves Ltd. Ahmednagar. Similarly, the officers recovered certain blank invoices of M/s. Bhilai Conductors Pvt. Ltd., which were duly pre-authenticated. The officers then seized the 503 Boxes of Super Enamelled Copper Wires totally valued at Rs. 21,99,360/- on reasonable belief that the said goods were manufactured in the appellant's factory, the production of which was allegedly suppressed with intent to evade duty."
2. a) A show cause notice dated 28.09.2000 was issued to the appellant by Additional Commissioner (Preventive), Central Excise Headquarters, Aurangabad which was made answerable to Additional Commissioner, Central Excise, Nasik, proposing to recover Central Excise duty of Rs. 3,51,898/- on the goods under seizure. Similarly, the seized goods were proposed to be confiscated and penalty under Rule 173Q was sought to be imposed on the appellant.
b) The appellants filed an appeal before Commissioner (Appeals) and at the hearing before the said Commissioner produced transportation bill dated 03.04.2000 issued by M/s. Balaji Transport Co. Durg (M.P.) for transportation of 353 boxes from Durg to Ahmednagar and for the transportation of the very said goods from Ahmednagar to Sinnar to substantiate that the goods under confiscation were infact manufactured in the factory of M/s. Bhilai Conductors Pvt. Ltd., Bhilai and cleared on payment of duty from there and was brought to the appellant's factory only at the requests of the buyer. Evidence of transportation charges were also produced along with the affidavit of buyers M/s. Crompton Greaves, Ahmednagar to support the appellant's claim that the goods under confiscation were transported to Ahmednagar and were refused delivery.
c) The Additional Commissioner, Central excise, Nasik, passed order in the matter demanding duty of Rs. 3,51,898/- and imposing penalty of Rs. 3,50,000/- under Rule 173Q. He also ordered confiscation of the seized goods but allowed redemption of the same on payment of redemption fine of Rs. 5,00,000/-.
3. After hearing both sides and considering the material, it is found -
a) The claim of the appellant before the lower authority of the goods of M/s. Bhilai Conductors being recovered as not accepted by the buyer is consistent. The labels on the boxes and other material produced especially the affidavit of the buyers executive needs reconsideration by the original authority.
b) There is force in the plea made before me that the order is non-speaking. The matter therefore requires re-adjudication by remitting the same back to original authority for de-novo adjudication after setting aside the order.
c) During the re-adjudication proceedings, all the issues should be re-determined and findings arrived at.
4. Appeal allowed as remand.
(Pronounced in Court on 9/12/2003.)