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Judgment
This appeal is directed against the impugned order dated 21.06.2011 passed by the Commissioner, Customs and Central Excise (Appeals-I), Jaipur.
Brief facts of the case are that the Department initiated Show Cause proceedings against the appellant on the basis of verification of record vis-a-vis
the availability of goods in the factory. The Department detected that the appellant had not properly accounted for the manufactured goods in the
Daily Stock Account i.e. RG-I register. It is also observed that there is shortage/ excess of finished goods and raw material as compared to the
accounts maintained by the appellant. The SCN was adjudicating vide order dated 10.01.2011, wherein the seized goods were confiscated and option
was given to the appellant to redeem the same on payment of redemption file of Rs.20,000/-. Further, Central Excise Duty demand of Rs.45,207/- was
confirmed against the clandestine clearance of the finished goods and raw material along with the interest. Besides, equal amount of penalty of
Rs.45,207/- was imposed on the appellant under Section 11AC of the Central Excise Act, 1944. Appeal filed against the adjudication order was upheld
by the ld. Commissioner (Appeals) vide impugned order dated 21.06.2011. Hence the appellant is before the Tribunal.
Heard both sides and perused the case records.
On perusal of the case records, I find that the appellant has not furnished any justifiable reason to negate the case of Revenue that the goods were
not clandestinely removed from the factory without payment of Central Excise duty. Further, the appellant has also not furnished any valid reason for
non maintenance of its statutory records properly. Thus, I am of the view that the duty demand confirmed by the authorities below and imposition of
penalty are in conformity with the statutory provisions. However, considering the fact that duty demand on the excess/ shortage in goods was
confirmed, imposition of redemption file of Rs.20,000/- on the seized goods valued at Rs.62,581/- is in the higher side, which can be reduced in the
interest of justice. Thus, the redemption file is reduced from Rs.20,000/- to Rs.5,000/-
The appeal is disposed of in above terms.
(Operative Portion pronounced in open court)