2003 (12) TMI 493 - AT - Central Excise

Summary

Issues:
Appeal against Order-in-Original No. CCE (Adj) TVS/6/2001; Confiscation of cut tobacco consignments; Allegations of diversion of goods; Non-matching marks and numbers on bags and documents; Duty demand and penalties imposed.

Detailed Analysis:

1. Facts and Allegations:
The appeals were filed against the Order-in-Original No. CCE (Adj) TVS/6/2001 by two companies, challenging the confiscation of cut tobacco consignments. The appellants supplied processed cut tobacco to franchise units, and issues arose regarding the transportation and re-warehousing of the goods.

2. Appellant's Arguments:
The appellant argued that the consignments were transported following proper procedures, and discrepancies in marks and numbers on bags did not indicate clandestine transportation. They contested the confiscation and penalties imposed, highlighting procedural compliance and lack of evidence supporting the allegations.

3. Revenue's Position:
The Revenue contended that the seized goods did not match the documents, justifying the confiscation and duty demand. They relied on statements and discrepancies in marks and numbers to support their case against the appellants.

4. Judgment and Findings:
The Tribunal analyzed the evidence presented by both sides and found discrepancies in the seizures made. They noted that the goods seized matched the documents in one instance but lacked evidence in others. The lack of proper investigation and evidence led to the Tribunal overturning the lower authority's decision.

5. Legal Analysis:
The Tribunal emphasized Rule 173N's requirement for re-warehousing within 90 days and the absence of endorsements on the AR3As before seizure. They found the lower authority's conclusions unsubstantiated due to the lack of evidence regarding marks and numbers on the bags and documents. The demand for duty without concrete proof was deemed contrary to the law.

6. Decision:
Based on the findings and legal analysis, the Tribunal allowed both appeals, overturning the confiscation and penalties imposed on the appellants. The judgment highlighted the importance of evidence, proper investigation, and adherence to legal procedures in excise matters.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved, arguments presented, the Tribunal's findings, and the legal reasoning behind the decision to allow the appeals.