2006 (11) TMI 518 - AT - Central Excise

Summary

Issues:
Confiscation of goods cleared without payment of duty, confiscation of the truck used in transporting the goods.

Confiscation of Goods Cleared Without Payment of Duty:
The case involved the confiscation of M.S. Bars cleared without payment of duty from the premises of Sunder Steel Product. The revenue contended that the goods were indeed cleared without duty payment, as admitted by the partner of Sunder Steel Products. The Commissioner (Appeals) set aside the confiscation citing lack of notice to the manufacturer, M/s. Siri Ram Steel Rolling Mills. However, it was established that Sunder Steel Products had ordered the goods without paying duty, and thus, the confiscation was deemed valid. The Tribunal found that the goods were rightfully seized from Sunder Steel Products, and notice was duly issued to them. Consequently, the Tribunal upheld the order passed by the adjudicating authority for the confiscation of the goods.

Confiscation of the Truck:
Regarding the confiscation of the truck used in transporting the goods, it was revealed that the driver admitted to transporting the goods without any invoice, indicating knowledge of the lack of proper documentation for duty payment. The revenue argued that under Section 115 of the Customs Act, any vehicle used for transporting offending goods is liable for confiscation, with the burden of proof on the owner to show lack of knowledge. The Tribunal found that the confiscation of the truck was justified due to the driver's acknowledgment of transporting goods without proper documentation. However, considering the circumstances, the redemption fine for the truck was reduced to Rs. 25,000 from Rs. 1 lakh. Ultimately, the Tribunal allowed the appeal, upholding the confiscation of the truck but modifying the redemption fine amount.

In conclusion, the Appellate Tribunal CESTAT, New Delhi ruled in favor of the revenue, upholding the confiscation of the goods cleared without duty payment from Sunder Steel Products and the truck used in transporting the goods. The judgment emphasized the importance of proper documentation and duty payment compliance in such cases, ensuring accountability for all parties involved in the supply chain.