ORDER
S.S. Kang
1. The appellants filed this appeal against the order-in-appeal passe by the Commissioner (Appeals)
2. facts of the case are that the appellants are engaged in the manufacture of PVC pipes. On 12.9.99, officers on the Revenue department visited the factory of the appellants and after verification of the stock it was found that 130.96.90 kgs. of PVC pipes was in excess as compared to the entries in R. I record. A Show cause notice was issued. The adjudication authorities ordered confiscation of the goods found excess under Rule 173 Q of the Rules and gave an option to the appellants to redeem the goods on payment of a fine of Rs. 75,000/-. A penalty of Rs.75,000/- was also imposed under Rule 173 Q of the Rules. The appellants filed an appeal and the same was dismissed.
3. Ld. Counsel, appearing on behalf of the appellants, submits that the goods were found in factory and there is no evidence on record to show that the appellants made any attempt to remove the goods without payment of duty. His submission is that the goods were duly enter in their private record. His submission is also that the goods were not entered in their statutory record the concerned person was on leave. He relies upon the decision of the Tribunal in the case of C.C.E. vs Pravesh Castings (P) Ltd.) reported in 2000 (41) RLT 719 and submits that they were liable SSC only under Rule 226 of the Rules.
4. Heard Jd. S.D.R., who reiterates the findings of lower authorities.
5. The contention o the appellants is that in the absence of mans re non-accoutal of the goods in R.G. I register does not warrant the goods liable for confiscation under Rule 3 Q of the Rules. The appellants are only liable to pay a penalty of Rs. 2,000/- under Rule 226 of the Rules. The Tribunal in the case of Pravesh Castings (P) Ltd. (supra), held that in absence of mens r on the part of assessee, neither the confiscation of goods nor imposition of penalty on the assessee is sustainable under Rule 173 Q of Rules. The appellants contended that they are only these Rules to maintain the entry book, stock account or warehouse register in respect of the goods produced, he shall maintain the same and any person, who fails to keep such book, account or register, as the case may be, shall be liable to a penalty, which may extend to Rs. 2,000/- and all the goods of which due entry has not been made in such book, shall be liable to confiscation.
6. In view of the admitted position that the good were not entered in the R.G. I record, the record, the goods are liable for confiscation under Rule 226 of the Rules. Taking into consideration the facts and circumstances of the case, the appellants are entitled to redeem the goods on payment of redemption fine of Rs. 25,000/-. The appellants are also liable to pay a penalty of Rs. 2000/- under Rule 226 of the Rules. The appeal is allowed as indicated above. The appellants are entitled for consequential relief, if any, in accordance with law. (Dictated in Court).
