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2003 (9) TMI 464 - AT - Central Excise
Issues:
Appeal against dropping duty on damaged cigarettes due to contamination. Analysis: The appeal before the Appellate Tribunal CESTAT, Kolkata concerned the dropping of duty amounting to Rs. 50,62,960 on cigarettes that were destroyed in the factory due to oil contamination. The Commissioner of Central Excise, Patna had dropped the duty raised against the respondents based on a test report indicating various damages to the cigarettes, rendering them unfit for human consumption. The main contention raised by the Revenue in their appeal was that the damage to the cigarettes was not conclusively proven to be due to water or oil contamination. However, the Tribunal noted that the fact of damage to the cigarettes was not disputed by the Revenue. The Tribunal emphasized that whether the damage was caused by water, oil contamination, or other reasons was irrelevant. Importantly, there was no evidence to suggest negligence on the part of the respondents in causing the damage. The Commissioner, in dropping the duty and ordering the destruction of the goods, relied on Rule 49 of the erstwhile Central Excise Rules, 1944. The Commissioner's decision was based on the goods being unfit for human consumption, as certified by the test agency. The destruction of the goods was carried out under the supervision of Central Excise Officers, as directed by the Commissioner. Ultimately, the Tribunal found no merit in the Revenue's appeal. They upheld the Commissioner's decision to drop the duty and allow the remission of duty on the damaged cigarettes. The Tribunal emphasized that the Order of Remission issued by the Commissioner was unchallenged by the Revenue, and the destruction of the goods was conducted in compliance with the Commissioner's directives. In conclusion, the Tribunal rejected the Revenue's appeal, affirming the dropping of duty on the damaged cigarettes due to contamination and the subsequent destruction of the goods as per the Commissioner's order and relevant excise rules.
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