2001 (10) TMI 420 - AT - Central Excise

Summary

Issues involved: Appeals challenging Order-in-Appeal dated 14-3-2001 regarding duty payment on PVC pipes and penalties imposed.

Summary:
1. The appellants, M/s. Sober Plastics Pvt. Ltd. and Shri Sudesh Gupta, Director, contested a show cause notice alleging duty evasion on 67,831 Kgs. of PVC pipes and shortages in inputs. The Central Excise officers based their findings on paper slips, weighment slips, and Dharamkanta slips.

2. Appellants argued that the slips were rough jottings, not maintained in regular business course, and lacked evidence of duty evasion. They disputed the authenticity of the slips and highlighted that all clearances were duty-paid. They also contended that physical verification was not conducted, and no panchnama was drawn.

3. The Joint Commissioner upheld the duty demand, citing the appellants' admission of shortages and rejecting their contention of improper stocktaking. However, no panchnama was drawn during checking, and shortages were estimated without proper verification.

4. The extended period of limitation was invoked based on alleged concealment of facts and clandestine clearance. The Tribunal found the demand lacked adequate basis and justification, ruling in favor of the appellants and setting aside the penalties.

5. The Tribunal concluded that the demand was unsustainable, considering the lack of proper verification and justification for penalties. Both appeals were allowed, providing consequential benefits to the appellants in accordance with the law.