2008 (2) TMI 791 - AT - Central Excise

Summary

Issues involved: Clandestine removal, verification of entries in statutory records, quantification of demand, personal penalty, confiscation of goods, interest.

Clandestine removal: The Tribunal observed that if entries reflected in private records were also duly made in statutory records and goods were cleared on duty payment, demand confirmation may not be justified. The matter was remanded to the Commissioner for verification. Despite multiple opportunities, the appellants failed to establish the entries in statutory records, leading to confirmation of the demand of Rs. 31,01,851.

Personal penalty: The appellants were found to be engaged in regular clandestine activities, breaking seals and using equipment for such activities. The Tribunal confirmed the penalty of Rs. 31,01,851, as there was no justification for reduction. However, the personal penalty of Rs. 5 lakhs on the partner of the Mill was set aside, as the firm had already been penalized an equivalent amount.

Confiscation of goods: The confiscation of processed fabric and other assets with redemption fines was set aside, as no justification was found for such actions. The Tribunal ruled to cancel the confiscation of fabrics and the redemption fines imposed on lands, buildings, plants, and machinery.

Interest: The Tribunal confirmed the interest as per the law.

Conclusion: Both appeals were disposed of with the confirmation of demand, penalties, and interest, while setting aside the personal penalty on the partner of the Mill and the confiscation of goods and assets.