2009 (4) TMI 603 - AT - Central Excise

Summary

Issues: Seizure and confiscation of rice bags meant for export due to quality concerns, waiver of pre-deposit during appeal, examination of rice samples by technical expert or laboratory

In this case, the Appellant's rice bags, intended for export, were seized and confiscated by revenue authorities for not meeting exportable quality standards. The Appellant argued that the oversight led to the containers not being filled with exportable quality rice, denying any deliberate attempt to export inferior goods. The Appellant requested the release of the seized goods due to their perishable nature and sought a waiver of pre-deposit during the appeal process. The Appellant's representative highlighted the lack of evidence of mala fide intentions on their part. On the other hand, the Departmental Representative supported the authorities' decision to seize the goods. The Tribunal noted that the Revenue had examined the rice but questioned the absence of details regarding the examination process by a technical expert or authentic laboratory in the records. Consequently, the Tribunal directed the Appellant to deposit Rs. 5 lakhs to redeem the goods, emphasizing the need for proper examination of rice samples by a technical expert or laboratory for a definitive decision on the quality. The Tribunal, considering the perishable nature of the goods, waived the pre-deposit of penalty during the appeal but instructed the Appellant to make the deposit promptly and provide proof to the adjudicating authority for the release of the seized goods. The Tribunal instructed the Departmental Representative to ensure timely action on the release of goods based on the deposit made by the Appellant. The judgment highlighted the importance of a thorough examination by technical experts or authentic laboratories in determining the quality of goods in such cases to ensure fair adjudication.