2004 (1) TMI 491 - AT - Central Excise

Summary

Issues: Revenue appeal against order setting aside confiscation of goods and penalty on the company, upheld penalty on manager and branch manager.

Confiscation of Goods and Penalty on the Company:
The case involved the confiscation of DG sets due to non-payment of duty, as Central Excise records were not maintained at the factory as required by law. The Deputy Commissioner found that the absence of debit entries in the invoice indicated non-payment of duty. Despite sufficient balance in RG 23A Pt-II and PLA, the intention to evade duty was established. The Commissioner (Appeals) set aside the confiscation and penalty on the company, citing reasons such as records taken for tax audit and sufficient balance in RG 23A Pt-II. However, the Revenue argued that these reasons were not acceptable as records should be maintained at the factory, and the absence of debit entry in the invoice indicated duty evasion. The Tribunal agreed with the Revenue, allowing the appeal and setting aside the Commissioner's order.

Penalty on Manager and Branch Manager:
The Deputy Commissioner imposed penalties on the manager and branch manager under Rule 209A read with Rule 173Q(1) for their involvement. The Commissioner (Appeals) dismissed the appeals by the manager and branch manager due to non-compliance. The Commissioner reasoned that records were taken for tax audit and the balance in RG 23A Pt-II justified no intention to evade duty. However, the Revenue argued that these reasons were not valid, as the absence of duty payment at interception indicated evasion. The Tribunal agreed with the Revenue, upholding the penalties imposed on the manager and branch manager.

This judgment highlights the importance of maintaining proper Central Excise records at the factory, the significance of debit entries in invoices to indicate duty payment, and the consequences of non-compliance leading to confiscation of goods and penalties. The decision emphasizes the need for strict adherence to legal requirements and the implications of failing to meet statutory obligations in Central Excise matters.