2009 (2) TMI 651 - AT - Central Excise

Clandestine removal - Proof - Demand - Limitation - Confiscation, fine and penalty - Penalty - Quantum of

Summary

Issues:
Investigation findings, Seizure of goods, Show cause notices, Duty demand, Penalties, Appeal against orders, Confiscation of goods, Redemption fine, Reduction of penalties, Demand of duty period.

Analysis:

Investigation Findings:
- Officers found appellant-company not registered with Excise authorities.
- Goods valued at Rs. 1,53,337/- seized for exceeding exemption limit.
- Show cause notices issued for confiscation, duty demand, and penalties.
- Second notice demanded duty of Rs. 41,520/- and imposed penalties.

Seizure of Goods:
- Goods seized as manufacturing unit not registered and not in records.
- Confiscation order passed with redemption fine of Rs. 35,000/- and penalties.

Show Cause Notices:
- First notice for seized goods, second notice for duty demand and penalties.
- Appellant argued second notice time-barred, relying on Supreme Court decisions.

Duty Demand and Penalties:
- Commissioner (Appeals) upheld orders demanding duty and imposing penalties.
- Appellant argued no new facts in second notice, time-barred demand.

Confiscation of Goods:
- Order of confiscation upheld, but redemption fine and penalties reduced.
- Demand of duty sustained for specific period, penalty reduced due to dispute.

Reduction of Penalties:
- Penalties reduced for seized goods and duty demand period.

Appeal Against Orders:
- Appellant's submissions considered, penalties on JCPA and deceased person set aside.
- Confiscation upheld, but redemption fine and penalties reduced.

Conclusion:
- Appeals disposed with upheld confiscation, reduced redemption fine and penalties.
- Demand of duty sustained for a specific period with reduced penalty.