2007 (3) TMI 521 - AT - Central Excise

Summary

Issues involved: Confirmation of duty demand, imposition of penalty for clandestine removal of ceramic glazed tiles.

Confirmation of duty demand: The authorities confirmed a duty demand of Rs. 7,26,970 along with interest and personal penalty on the appellant for alleged clandestine removal of ceramic glazed tiles. The case was based on the recovery of a register showing clearance of glazed frit without proper documentation. The partner of the appellant admitted to receiving frit without a bill and using it in the manufacture of tiles cleared without duty payment.

Imposition of penalty: Proceedings were initiated resulting in the impugned order by the Joint Commissioner, Rajkot. The appeal before the Commissioner (Appeals) was unsuccessful, leading to the present appeal. The Revenue's case relied on the input-output ratio of ceramic frit obtained from a specific supplier. However, the appellant argued that ceramic frit was not the main raw material for tile manufacture but rather a material for coating, supported by standard norms from a government agency. The calculations were based on theoretical consumption ratios, and there was a lack of tangible evidence to prove clandestine manufacture and removal. The partner's retracted confessional statement was the main basis for the Revenue's case, which was deemed insufficient to uphold the duty demand and penalty.

Conclusion: The Tribunal found in favor of the appellant, setting aside the impugned order and granting consequential relief.