ORDER
P.K. Desai, Member (J)
1. This appeal is directed against the order in original No. 2/CEX/87 [F. No. V (85)15-41 /Adj/87], dated 26-10-1987 passed by the Additional Collector of CE. & C, Pune, ordering confiscation of the goods found unaccounted in the pre-budget stock with an option to pay redemption fine of Rs. 25,000/- and imposing personal penalty of Rs. 5,000/-.
2. Shri Parthasarathy, the ld. advocate, appearing for the appellants, submits that the pre-budget stock declaration was given and on the next date when the officers came for verification 9 pcs. were found not accounted for in the RG 1, which were reported to have been shown as not in manufactured condition as the manufacturers awaited the final check by the customers for whom these machines were tailor-made. He thus submits that there was no mala fide and the order of imposition of penalty and confiscation is not called for. He also pleads that the customers would be eligible for availment of modvat credit, and hence there could be no intention to evading duty. The customers are the State Electricity Boards.
3. Ms. Bharati Chavan, the ld. JDR, for the Department, however, submits that the goods were already packed and awaited final approval. That was the stage when the entry in RG.I ought to have been made.
4. Considering the submissions made and going through the records, as the non entry in the RG.I register when the goods are awaited for final check, could not be construed to be a technical lapse, the order of confiscation cannot be held to be bad and hence, has to be sustained. However, considering the fact that the customer would have availed of the modvat credit and there was no intention of evading duty payment, the redemption fine is reduced from Rs. 25,000/- to Rs. 10,000/- (Rupees ten thousand only). So far as the penalty amount is concerned, it appears that they had acted under the bonafide belief that they could make the entry in RG.I register at the later stage. With no malafide intention to evade the duty payment made out in the order, the penalty is remitted.