2004 (97) ECC 625 (Tri)

CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL

New Delhi -- Bench-NB(A)

Smt. Jyoti Balasundaram, Member (J) and Shri V.K. Agrawal, Member (T)

Vasant Spinners

Versus

CCE, Ghaziabad

Appeal No. 351/2004-NB(A)

[Arising out of Order-in-Appeal No. 443-CE/GZB/2003 dated 27.10.2003 passed by the Commissioner of Central Excise (Appeals), Ghaziabad]

Final Order No. 851/2004, dt. 15.7.2004, Certified on 24.8.2004

Confiscation/Redemption fine/Penalty (C. Excise)

Cotton yarn -- Manufacture of -- Captively converted into multiple fold/cone/cross reel/plain reel yarn before clearance from the factory; -- Single yarn, which had been manufactured by them, had not been entered in R.G. I register, which was the requirement of the law at the material time. In view of this, the yarn, in question, is liable to confiscation -- The same is upheld -- Held, we reduce the redemption fine to Rs. 50,000. The penalty imposed on the appellants is on the higher side which is also reduced to Rs. 5,000. The appeal is disposed of in the above terms.

Appeal disposed of

PRESENT :

Shri J.P. Kaushik, Advocate for the appellant.

Shri S.C. Pushkarna, JDR for the respondent.

Cases Cited :

1. CCE, v. Hard Core (India), 2003 (58) RLT 153.................................................. [Para 5]

2. Indian Oxygen Ltd. v. CCE, 1988 (36) ELT 723 (SC)......................................... [Para 3]

Per : V.K. Agrawal

M/s. Vasant Spinners have filed the present appeal being aggrieved by the Order-in-Appeal No. 443/2003 dated 27.10.2003 passed by the Commissioner (Appeals).

2. We heard Shir J.P. Kaushik, learned Advocate for the appellants and Shri S.C. Pushkarna, learned D.R. for the Revenue. The learned Advocate submitted that the appellants manufacture cotton yarn; that single yarn is captively converted into multiple fold/cone/cross reel/plain reel yarn before clearance from the factory; that the yarn is sold at the factory gate to the dealers, from depots and through the consignment agents; that on their visit on 30.6.98, Central Excise officers found single and multifold cone yarn valued at Rs. 4,71,100, which was not entered in the R.G. I register; that the officers also found another lot of single and multifold yarn valued at Rs. 1,22,761 unaccounted in R.G. I register; that these yarn were seized by the officers; that on scrutiny of the documents, the officers pointed out that they had been undervaluing the yarn sold through the consignment agents since, according to them, the assessable value should have been the sale price of consignment agents minus excise duty, cess, sales tax, freight and octroi charges upto October 1996; that after 1996, the assessable value of yarn sold through consignm