2004 (3) TMI 688 - AT - Central Excise

Summary

Issues:
1. Confiscation and penalty on seized excisable goods.
2. Determination of duty and penalties imposed under Section 11AC.
3. Reduction of penalty and duty under Rule 173Q.
4. Imposition of penalty on the same corporate body under Rule 209A.

Analysis:

1. The case involved the confiscation of 29.2 MT of excisable goods seized in the trading unit premises, along with 4.5 MT of goods found to be removed unaccounted from the appellant's premises to the trading unit. The goods were considered illicitly manufactured and clandestinely removed, leading to the imposition of a duty of Rs. 2,04,400/- and a redemption fine. The plea that the 29.2 MT of goods were stocks of the trading unit was not accepted. Penalties were also imposed on both the assessee and the trading unit under relevant rules.

2. Upon hearing both sides, it was noted that there was no appeal filed regarding the determination of duty, which was confirmed. As the duty demands were not contested, the penalties under Section 11AC were also upheld. However, considering that the removals were within the same corporate body from the manufacturing unit to the trading unit, the confiscation and redemption fine were deemed unnecessary. The penalty and duty under Rule 173Q were considered excessive and thus reduced to Rs. 50,000/-, with the redemption fine being set aside.

3. Regarding the imposition of a penalty on the same corporate body under Rule 209A for abetting, it was reasoned that since the corporate entity remained the same, separate penalties could not be upheld. It was highlighted that one cannot abet oneself, leading to the setting aside of the penalty of Rs. 50,000/- under Rule 209A. Ultimately, the appeals were allowed in the terms mentioned above, leading to adjustments in penalties and duties based on the findings and considerations made during the proceedings.