2006 (11) TMI 511 - AT - Central Excise

Summary

Issues involved: Confiscation of seized goods, redemption fine, penalty imposition, clandestine removal of goods, KVSS scheme application, unaccounted goods in factory, mens rea for confiscation.

Confiscation of seized goods and penalty imposition: The appellant, engaged in manufacturing tyres, had excess unaccounted tyres seized during a search. Authorities found evidence of clandestine removal of goods and unaccounted stock at the head office. Show cause notice was issued for duty demand, confiscation, and penalty. While KVSS relief was granted for clandestinely removed goods, no relief was given for the seized excess goods. The adjudicating authority confiscated the seized goods with an option for redemption on payment of fine and imposed a penalty. The appellant challenged this decision, arguing that the confiscation was improper as the excess tyres were only unaccounted in the register, citing a precedent. The Tribunal rejected this argument, noting the appellant's failure to provide a justifiable explanation for the unaccounted goods and upheld the confiscation and penalty based on the evidence of clandestine removal.

Mens rea for confiscation: The Tribunal referenced a Larger Bench decision establishing that mens rea is not required for the application of certain Central Excise Rules. Relying on this precedent, the Tribunal found no merit in the appellant's appeal, affirming the correctness of the impugned order and dismissing the appeal for lack of merits.

Separate Judgement: The judgement was pronounced in the open court on 6-11-2006 by Shri M.V. Ravindran, J.