2002 (8) TMI 701 - AT - Central Excise

Summary

Issues Involved:
1. Confirmation of duty and penalties against M/s. Sita Cement Ltd.
2. Seizure and verification of documents and goods.
3. Allegations of clandestine removal of goods.
4. Personal penalties on individuals involved.

Summary:

1. Confirmation of Duty and Penalties:
The Commissioner of Central Excise & Customs confirmed a duty of Rs. 40,73,466/- against M/s. Sita Cement Ltd. and imposed an equivalent personal penalty u/s 11AC of the Central Excise Act, 1944. Additionally, interest u/s 11AB was ordered to be recovered. A personal penalty of Rs. 1,00,000/- was imposed on the Managing Director u/r 209A of Central Excise Rules, 1944.

2. Seizure and Verification of Documents and Goods:
The appellants, engaged in manufacturing cement, were found with discrepancies during a road patrolling operation. Three trucks intercepted on 25-8-99 had fake duty payment documents. Subsequent factory inspection revealed another truck without duty documents and discrepancies in PLA and RG 23A Pt. II records. Two sets of challan books were found, indicating fake entries and non-payment of duties.

3. Allegations of Clandestine Removal of Goods:
The appellants admitted non-payment of duty for clearances on five trucks and agreed to pay Rs. 9,76,880/-. The show-cause notice alleged clandestine removal, leading to the impugned order. The demand related to four annexures in the notice. For Annexure "A", the duty of Rs. 9,76,880/- was confirmed, with a correction of Rs. 18,000/- to be verified by the Commissioner.

For Annexures "B" & "C", the duty of Rs. 7,66,070/- and Rs. 18,57,984/- was confirmed due to admitted maintenance of two sets of invoices, indicating clearances without duty payment. The Tribunal rejected the appellants' explanation of financial difficulties and confirmed the duty demands, citing the appellants' mala fide actions and destruction of invoice copies.

For Annexure "D", the duty demand of Rs. 4,72,532/- was based on delayed duty debits in triplicate and quadruplicate copies. The Tribunal extended the benefit of doubt, finding no duplicate set of invoices, and did not confirm the duty demand.

4. Personal Penalties on Individuals Involved:
The Tribunal upheld the imposition of personal penalties but reduced the penalty on M/s. Sita Cement Ltd. from Rs. 40,73,466/- to Rs. 25 lakh, considering the partial relief granted. The penalty of Rs. 1 lakh on the Managing Director was upheld due to his involvement in the activities.

The appeals were disposed of accordingly.