ORDER
S.S. Kang
1. The applicants filed this application for waiver of pre-deposit of penalty amount of Rs.10,000.00 imposed on the applicants under Rule 173 Q and under Rule 226 of the Central Excise Rules.
2. Heard both sides.
3. The contention of the applicants is that the unaccounted goods were lying in the factory and there was no mens rea on the applicants to removed the same without payment of duty. The contention of the applicants is that they were exporting all their product, which was in the knowledge of the revenue authority. The applicants also relied upon the decision of the Tribunal in the case of Bhillai Conductors (P) Ltd. vs C.C.E. reported in 2000 (91) ECR 569 (T) to say that in absence of any mens rea unaccounted goods found in the factory, the manufacturer is only liable to fine of Rs. 2,000.00 under Rule 226 and no penalty can be imposed under Rule 173 Q of the Rules. Keeping in view the facts and circumstances of the case, and as the applicants were duly registered with the revenue authorities, they were required to maintain proper record of the goods, Prima facie, it is not a fit case for total waiver of pre-deposit of penalty.
Keeping in view the decision of the Tribunal in the case of Bhillai Conductors (supra), the applicants are directed to deposit a sum of Rs. 2,000.00. On deposit of this amount, the deposit of remaining amount of penalty is waived for the hearing of the Appeal. To come up for reporting compliance on 11.5.2001. (Dictated in Court).