2007 (2) TMI 491 - AT - Central Excise

Summary

Issues:
1. Confiscation of goods and imposition of fine and penalty by the adjudicating authority.
2. Commissioner (Appeals) setting aside the adjudication order.
3. Allegations regarding the use of improper documents for transportation.

Analysis:
1. The appeal was filed by the revenue against an order-in-appeal dated 26th October 2004, where the adjudicating authority confiscated grey knitted fabrics loaded in a vehicle and imposed fines and penalties on the respondent, who is engaged in trading MM Knitted fabric processed by job workers registered under Rule 12B of the Central Excise Rules, 2002. The Commissioner (Appeals) set aside the adjudication order, leading to the revenue's appeal.

2. The appellant argued that the Commissioner (Appeals) erred in releasing the seized goods based on the job workers' registration without considering the use of improper documents (private challans/kacha challans) for transportation, which did not comply with Rule 12B of the Central Excise Rules, 2002. The respondent's responsibility to maintain proper documents under sub-rule (4) of Rule 12B was emphasized.

3. The respondent's advocate supported the Commissioner (Appeals)'s decision, pointing out the proviso to Rule 12B(1) which exempts the person (respondent) from certain provisions when the job worker is registered and responsible for duties like maintaining accounts, paying duty, and preparing invoices. As the job worker was registered for processing textile goods, it was deemed their duty to comply with the rules. The Commissioner (Appeals) confirmed that the seized materials were duty paid based on invoices submitted by the respondent, a fact undisputed by the revenue. Consequently, the appeal by the revenue was rejected, upholding the Commissioner (Appeals)'s decision.

This detailed analysis of the judgment highlights the issues of confiscation, penalties, improper documentation, and the responsibilities of job workers under Rule 12B of the Central Excise Rules, 2002, leading to the final decision to reject the revenue's appeal.