2002 (7) TMI 605 - AT - Central Excise

Summary

Issues:
1. Confiscation of seized goods and imposition of penalty against M/s. Central Udyog & Co., Amaravati.
2. Withdrawal of charges against M/s. Saraswati Rubber Works (P) Ltd., Gurgaon.
3. Validity of the order of confiscation and penalty imposed by the Deputy Commissioner of Central Excise Division-I, Gurgaon.
4. Appeal against the order of the Commissioner (Appeals), New Delhi.

Analysis:

1. The Central Excise Officers conducted a search at the premises of M/s. Central Udyog & Co., Amaravati, where they found 21 bundles of Tread Rubber manufactured by M/s. Saraswati Rubber Works (P) Ltd., Gurgaon. The rubber bundles were received without any invoice or bill. A show cause notice was issued to both companies, calling for the confiscation of the seized goods and imposition of penalties under relevant rules.

2. A corrigendum was later issued withdrawing the charges against M/s. Saraswati Rubber Works (P) Ltd., Gurgaon, leaving the proceedings to continue solely against M/s. Central Udyog & Co., Amaravati. The Deputy Commissioner ordered the confiscation of the seized goods but provided an option for redemption on payment of a fine. A penalty was also imposed on M/s. Central Udyog & Co., Amaravati.

3. The appellant filed an appeal against the order of the Commissioner (Appeals), challenging the confiscation and penalty. The Tribunal noted that the charges related to contravention of rules and intent to evade duty were withdrawn against the manufacturer, rendering the confiscation of goods invalid. The imposition of penalty under Rule 209A was deemed inappropriate since the goods were not liable for confiscation.

4. The Tribunal concluded that the orders passed at both the original and appellate stages were in disregard of statutory provisions. As the charges against the manufacturer were withdrawn, the confiscation of goods and penalty on the appellant were unjustified. Consequently, the impugned order was set aside, and the appeal was allowed, along with the disposal of the Stay Petition.

This detailed analysis of the judgment highlights the issues of confiscation, withdrawal of charges, validity of orders, and the appeal process, providing a comprehensive understanding of the legal proceedings and the Tribunal's decision.