2008 (11) TMI 503 - AT - Central Excise

Summary

Issues involved: Revenue appeal against order-in-appeal regarding confiscation of goods and recovery of excise duty on Gutkha consignment intercepted at Chennai.

Summary:

Issue 1: Confiscation of goods
The officers intercepted a container containing Gutkha consignment booked by a carrier but untraceable to the respondent. The Deputy Commissioner dropped proceedings for recovery of excise duty, penalty, and confiscation. The Assistant Commissioner ordered the release of the goods, which was upheld by the CCE (Appeals).

Issue 2: Review appeal
The revenue filed a review appeal against the Deputy Commissioner's order, which was dismissed by the CCE (Appeals). The revenue appealed against the release of the goods.

Issue 3: Arguments
The Departmental Representative argued for confiscation based on non-duty paid goods recovery precedent. The respondent's Counsel argued lack of evidence linking the goods to the respondent and cited a judgment on clandestine removal without proof.

Judgment:
The Tribunal found no evidence linking the goods to the respondent for clandestine clearance without duty payment. As there was no proof of booking by the respondent, confiscation, duty recovery, and penalty imposition were rightly dropped. The Tribunal dismissed the revenue appeal, citing lack of evidence and upholding the lower authorities' decisions.