2003 (7) TMI 504 - AT - Central Excise

Summary

Issues:
1. Confiscation of bags found in different premises.
2. Reduction of redemption fine and personal penalty.
3. Confiscation and export-related issues.
4. Seizure and subsequent clearance of additional bags.
5. Reduction of penalties for different individuals involved.

Confiscation of Bags Found in Different Premises:
The case involved the confiscation of bags of calcium stearate found in different premises belonging to the appellant. Initially, 350 bags were found in one premises and 250 bags in another, leading to a show cause notice proposing confiscation and penalties. The Additional Commissioner confiscated the bags and imposed redemption fines and personal penalties. However, the Commissioner (Appeals) reduced the redemption fine and personal penalty, stating that there was no evidence of clandestine purposes for the bags found in the premises of M/s. Anvil Cables. The order was challenged, leading to the present appeal.

Reduction of Redemption Fine and Personal Penalty:
The Commissioner (Appeals) reduced the redemption fine and personal penalty imposed by the Additional Commissioner. For the bags found in different premises, the Commissioner held that while there was a technical violation, there was no evidence of clandestine clearance. As a result, the redemption fine was reduced to Rs. 50,000, and the personal penalty was also reduced. The appellant challenged this order before the tribunal.

Confiscation and Export-Related Issues:
Regarding the bags meant for export, the appellant's contention was that the goods were intended for export, supported by the filing of a shipping bill and subsequent events leading to the offloading of bags due to technical issues. The Revenue alleged that the loss of statutory records was a camouflage offense. The tribunal noted that the adjudicating authority did not confirm the duty involved, indicating acceptance of the export contention. The tribunal upheld the confiscation for technical violations but found no reason to interfere with the reduced redemption fine.

Seizure and Subsequent Clearance of Additional Bags:
An additional 505 bags were found in the appellant's factory, with only 250 initially seized. Subsequently, the appellant informed the central excise officers about the remaining bags, seeking permission to enter them in their records. The Revenue granted permission, and the bags were cleared after entry in the records. The appellate authority held that these goods were not liable for confiscation, citing relevant tribunal decisions and the absence of mala fide intentions. The tribunal upheld this finding and the reduction of penalties for different individuals involved.

Reduction of Penalties for Different Individuals Involved:
The Commissioner (Appeals) had reduced penalties for various individuals involved in the case, including the appellant company and specific individuals. The tribunal found no justification to interfere with the reduced penalty amounts, as there was no evidence of mala fide intentions and no connection of certain individuals with the alleged offenses. The penalties were upheld based on the findings of the Commissioner (Appeals).