2009 (8) TMI 880 - AT - Central Excise

Summary

Issues involved: Appeal against order setting aside detention of goods u/s Rule 230 of Central Excise Rules, 1944; Challenge on grounds of lack of show cause notice; Status of detained goods under Customs Act, 1962.

Detention of Goods u/s Rule 230: The appeal arose from an order setting aside detention of goods under Rule 230 of the Central Excise Rules, 1944. The respondent failed to clear dues leading to detention of goods for recovery of duty and penalty. The matter had a history of appeals and remands before reaching the Tribunal.

Challenge on Lack of Show Cause Notice: The appellant challenged the impugned order on the grounds that Rule 230 does not mandate a show cause notice. However, the Tribunal emphasized the importance of following natural justice principles when divesting an assessee of property, even if not explicitly required by statutory provisions.

Status of Detained Goods under Customs Act: Post the order setting aside detention, the goods were sought to be detained under the Customs Act, 1962, but were released back to the respondents on the same day. The Tribunal noted that the goods were no longer detained as of the date of hearing, and the absence of a stay on the impugned order allowed the respondents to deal with the goods freely.

Conclusion: The Tribunal found no reason to interfere with the impugned order, emphasizing the need for the department to adhere to natural justice principles even in the absence of explicit statutory requirements. The appeal was dismissed, highlighting the importance of responsible action by the department in accordance with the law.