2005 (4) TMI 421 - AT - Central Excise

Summary

Issues involved:
Confirmation of duty with penalty on the firm and penalties on other appellants based on intercepted goods, validity of documents, duty confirmation on short found goods, duty confirmation on goods cleared initially but received back defective, duty confirmation on goods sent to job worker.

Analysis:
The appeals were filed against a common order-in-appeal confirming duty with penalty on the firm and penalties on other appellants. The interception of a truck loaded with goods led to the dispute. The truck carried ESB, PCB sheets, and Kraft Paper. The duty on these goods was contested, and the duty amount was already deposited by the appellant firm, which was upheld. Similarly, duty confirmation on short found goods was not contested and was also confirmed.

Regarding the duty confirmation of Rs. 37,563/-, it was held that the duty could not be sustained under the law. The goods initially cleared by the firm but received back defective were cleared again after removing the defects. The firm did not follow the procedure correctly, but no duty could be demanded again as they were entitled to take credit on rejected goods. Thus, no revenue loss was involved, and the duty confirmation was set aside.

Furthermore, the duty confirmation of Rs. 18,387/- against the firm could not be sustained. These goods were sent to a job worker and received back with duty entered in the record, indicating no duty evasion. This duty demand was also set aside.

In terms of penalties, the redemption fine for seized goods was reduced, and penalties on the driver of the truck and the Director of the Company were reduced. The penalty on the firm was also reduced. However, apart from these modifications, the impugned order was upheld, and the appeals were disposed of accordingly.