2004 (10) TMI 461 - AT - Central Excise

Summary

Issues:
1. Upholding of central excise duty demand and penalty by the Commissioner (Appeals) on goods seized outside factory premises based on invalid invoices.

Analysis:
The appeal before the Appellate Tribunal arose from the Commissioner's decision affirming the lower authority's demand of Rs. 61,847/- as central excise duty on goods seized outside the factory premises with invalid invoices, along with a penalty of Rs. 10,000/- imposed on the appellant. The appellant's case centered around the interception of a vehicle carrying excisable goods under an excise invoice dated 30-11-1999, despite duty being discharged on the goods on the same date. The Department contended that the appellant failed to discharge duty on the goods being transported on 4-12-1999 under an invoice dated 30-11-1999, alleging a violation of Central Excise Rules.

Upon hearing both sides, the Tribunal noted that the goods found in the vehicle on 4-12-1999 were duty paid and there was no attempt to clear goods repeatedly on one invoice. However, the issue arose from the discrepancy where duty was paid on 30-11-1999 but goods were transported on 4-12-1999, contrary to the requirement for invoices to accurately reflect the time and place of removal. While there was no evidence of non-duty paid goods, a contravention of Central Excise Rules was established. The Tribunal emphasized that duty cannot be demanded twice on the same goods and referred to a precedent to support this principle unless clandestine removal is proven.

In light of the circumstances, the Tribunal set aside the demand for duty but reduced the penalty from Rs. 10,000/- to Rs. 5,000/-. The decision partially allowed the appeal, acknowledging the duty payment on the goods while emphasizing the importance of adherence to Central Excise Rules to avoid such discrepancies and penalties in the future.