2009 (1) TMI 695 - AT - Central Excise

Summary

Issues involved: Alleged evasion of duty through unauthorized transfer of goods between two units of the same company without proper documentation.

Summary:
The case involved four appeals arising from proceedings against a company with two units, where excess goods were found at one unit without proper documentation, leading to allegations of duty evasion. The company claimed the transfer was a procedural lapse and not an intentional evasion. The Deputy Commissioner confiscated the goods and imposed penalties, which were upheld by the Commissioner (Appeals), leading to the current appeal.

Upon review, it was established that the goods were purchased and accounted for by the company, and the transfer to the second unit was a procedural infraction rather than intentional evasion. The Tribunal found that the company had taken necessary credits and had no motive to evade duty. The Commissioner (Appeals) was criticized for assuming future evasion without concrete evidence.

The Tribunal set aside the duty demand and penalties imposed, except for a procedural penalty on the first unit for not issuing the required challan. The judgment confirmed a reduced penalty for this procedural lapse, while overturning other penalties. Ultimately, all four appeals were disposed of accordingly.