Customs, Excise and Gold Tribunal - Delhi
Bombay Metal Industries vs Cce on 7 June, 2002
Equivalent citations: 2002(105)ECR733(TRI.-DELHI)
ORDER S.S. Kang, Member (J)
1. Heard both sides.
2. Appellants filed this appeal against the order-in-appeal passed by the Commissioner (Appeals).
3. The appellants are engaged in the manufacture of bare copper wire. On 24.7.1997, officers of the revenue department visited the factory of the appellants and during verification, it was found that certain final products were kept in the factory without entering in their R.G. I record. The goods were taken into possession and after issuing show cause notice, the goods were confiscated and redemption fine of Rs. one lakh was imposed. A penalty of Rs. three lakh was also imposed on the appellants. Appellants filed the appeal and the Commissioner (Appeals) reduced the redemption fine to Rs. 75,000.00 and also reduced the penalty amount to Rs. 75,000.00.
4. Appellants relied upon the decision of the Tribunal in the case of Bhillai Conductors (P) Ltd. v. CCE reported in 2000 (91) ECR 569. In this case, the Tribunal held that in absence of any mens rea, the manufacturer is liable under Rule 226 of the Rules.
5. The contention of the appellants is that there is no evidence on record to show that the appellants removed the goods without payment of duty or there is any intention on his part to remove the goods without payment of duty. The contention of the appellants is that they are only liable for contravention of Rule 226 of the Rules. Rule 226 of Central Excise Rules provides fine of Rs. 2,000.00 as well as provides for confiscation of the goods not entered in their statutory record. Therefore, in these circumstances, the order of confiscation is up-held. However, taking into consideration, the facts and circumstances of the case, redemption fine is reduced to Rs. five thousand and penalty is reduced to Rs. 2,000.00. the appeal is disposed of as indicated above.
(Pronounced in Court).