2007 (5) TMI 538 - AT - Central Excise

Summary

Issues involved: Appeal against order of Commissioner (Appeals) regarding confiscation of unaccounted stock of readymade garments, duty demand, redemption fine, and penalties.

Confiscation of unaccounted stock:
The Department appealed against the order of Commissioner (Appeals) confirming duty demand for unaccounted stock in the shop premises. The original authority had ordered the confiscation of readymade garments found at the shop and factory premises, with a provision for redemption on payment of a fine. The Commissioner (Appeals) upheld the duty demand for stock in the shop premises, confirmed the balance demand after adjustment, and reduced the redemption fine and penalty imposed.

Demand of duty on goods in factory premises:
The Commissioner (Appeals) dropped the demand of duty for goods in the factory premises, citing lack of evidence for clandestine clearance. The Department's appeal focused on this aspect, arguing that the goods in the factory were not necessarily intended for clandestine removal. The contention that the goods could have been cleared without accounting if not for the officers' visit was deemed a presumption. The Tribunal upheld the Commissioner (Appeals) decision, stating no valid grounds were presented to interfere with the findings.

Conclusion:
The Tribunal rejected the Department's appeal, affirming the Commissioner (Appeals) decision regarding the confiscation of unaccounted stock in the shop premises and the dropping of duty demand for goods in the factory premises. The judgment emphasized the lack of evidence supporting clandestine removal of goods from the factory and dismissed the Department's arguments against the Commissioner (Appeals) order.