2005 (3) TMI 586 - AT - Central Excise

Summary

Issues: Duty demand, penalty imposition, misdeclaration of goods, confiscation of goods, exemption notification, reduction of redemption fine, reduction of penalty, imposition of personal penalties

In this case, the appellants appealed against the order-in-appeal where the Commissioner affirmed the duty demand and penalty imposed by the adjudicating authority. The appellants were engaged in the manufacture of M.S. Steel ingots, Iron Castings, and Hot Rolled Products of Iron & Steel, misdeclaring non-alloy Steel ingots as alloy steel products to evade duty. They also wrongly availed the benefit of an exemption notification. The authorities rejected the appellants' claim of manufacturing alloy steel products based on a report from the Central Revenue Control Laboratory. Consequently, the confiscation of goods seized from the factory premises was deemed lawful by the authorities, upholding the duty demand and penalties imposed.

Regarding the redemption fine and penalties, the Tribunal reduced the redemption fine to Rs. 40,000 and the penalty on the company to Rs. 10,000. However, due to insufficient evidence, the personal penalties imposed on the other appellants, who were directors of the company at the time, were set aside. The impugned order was modified accordingly, with the reduction in fines and penalties, ultimately disposing of the appeals in the specified terms. The operative part of the order was pronounced in open court on 3rd March 2005.