- (1.) Challenging the order dated 6.5.2005 passed by the CESTAT modifying the order of the Commissioner and reducing the redemption fine to Rs.3 lakhs and imposing personal penalty of Rs.3 lakhs, the appellant has preferred this appeal.
(2.) The appeal was admitted on the following substantive question of law:- "Whether the provisions of Rule 173Q of the Central Excise Rules, 1944 is attracted in the absence of any intention to waive the payment of central excise duty and/or in absence of removal of any excisable goods or any entry of any excisable goods in RG-1 Register"
(3.) Brief facts of the case are that the appellant is engaged in the manufacture of MS Ingots. On 27.04.2001, the Officers of the Central Excise visited the factory premises of the appellant and scrutinized the records of production and clearance of MS Ingots. Scrutiny of RG-1 Register (Daily Stock Account) maintained at the factory of the appellant showed a balance stock of 260.290 MT held by them on that date. However, on verification, the actual stock of MS Ingots lying in the factory premises of the appellant were found to be much in excess of what was shown as balance stock in the RG-1 Register. Therefore, a physical verification of stock of MS Ingots lying in the factory premises was undertaken by the Central Excise Officers and altogether 10262 pieces of MS Ingots were found stored in different lots. To determine the weight of MS Ingots lying in the stock, weighment of 1012 pieces of MS Ingots were selected randomly and total weight of 1012 pieces was found to be 83950 Kgs. and therefore, the average weight of one piece of MS Ingots worked out to 82.95 Kgs. Accordingly, the weight of total stock of MS Ingots physically available in the factory premises was worked out to 861.495 MT. An excess stock of 601.205 MT was thus found than what was recorded in the RG-1 Register, i.e. 260.290 MT. After issuing the show cause notice dated 23/24.5.2001 and after affording opportunity to the appellant, the Commissioner of Central Excise passed the Order-in-Original No.52/MP/Commr/2004 dated 29.07.2004 ordering confiscation of the seized MS Ingots weighing 601.205 MT (7162 pieces) under Rule 173Q read with Rule 209 of Central Excise Rules, 1944. The Commissioner, however, gave an option to the appellant to redeem the confiscated quantity of MS Ingots on payment of redemption fine of Rs.10 lakhs. The Commissioner also imposed penalty of Rs.10 lakhs under Rule 173Q read with Rule 209 of Central Excise Rules.;