2007 (2) TMI 408 - AT - Central Excise

Summary

Issues:
The issues involved in the judgment are clandestine removal of goods without payment of duty, confirmation of demand of duty, imposition of penalty, confiscation of excess found goods, and the adequacy of evidence in establishing charges.

Clandestine Removal of Goods:
The case involved the respondents being engaged in processing man-made fabrics and cotton fabrics, where discrepancies were found during a visit by Central Excise Officers. Statements from the Manager/Authorized signatory of the unit admitted to the clearance of goods without payment of duty, sold in the open market against cash. The respondents admitted to engaging in clandestine activities due to an urgent need for cash. The Additional Commissioner confirmed the demand of duty, imposed penalties, and confiscated excess found goods. The Commissioner (Appeals) set aside the confirmation of demand and penalties due to lack of evidence beyond the manager's statement. However, the appellate authority's decision was overturned as the manager's statements were not retracted, corroborated each other, and the respondents voluntarily deposited the duty amount. The tribunal upheld the charge of clandestine removal and restored the Additional Commissioner's order, reducing the penalty amount.

Confiscation of Excess Found Goods:
Regarding the confiscation of excess found fabrics, the Commissioner (Appeals) set aside the confiscation as there was no evidence that the goods were meant for clearance without payment of duty. The tribunal agreed with this decision, noting that while past clandestine clearances raised doubts, they did not serve as conclusive evidence. As a result, the confiscation of the seized goods was upheld, and the Revenue's appeal was disposed of accordingly.