2009 (5) TMI 845 - AT - Central Excise

Non-payment of 50% of the Additional Duty of Customs (ADC) of the 22 consignments cleared to DTA sale

Summary

Issues involved: Non-payment of 50% of Additional Duty of Customs on consignments cleared for DTA sale.

Detailed Analysis:

1. Facts and Background: The appellants made DTA sales of tangs and scaifes under specific AR1As against advance DTA sale permission. They cleared 22 consignments for DTA sale without paying 50% of the Additional Duty of Customs, despite paying other duties. A show cause notice was issued proposing a demand of Rs. 4,12,480/- towards Central Excise duty for alleged underpayment.

2. Adjudication: The Adjudicating authority confirmed the demand, leading the appellants to appeal to the Commissioner (Appeals). The appeal was dismissed by the Commissioner, upholding the original order.

3. Appellant's Arguments: The appellant's counsel argued that the order-in-appeal was incorrect and should be set aside. They claimed that clearances to DTA were done as per Customs orders, and no contraventions were admitted.

4. Contentions: The main issue revolved around the non-payment of 50% of the Additional Duty of Customs on the consignments cleared for DTA sale. The appellant contended that they were unaware of this requirement. However, the Commissioner (Appeals) found that the appellants were indeed aware of the duty liability, as evidenced by their written submissions and personal hearing. Ignorance of the law was not accepted as an excuse, leading to the liability of Rs. 4,12,480/- being upheld.

5. Decision: The appellate tribunal reviewed the submissions from both sides and upheld the lower authorities' orders. It was noted that the appellant did not appeal against the duty liability and that it was their responsibility to discharge the Additional Duty of Customs when clearing goods for DTA sale. Consequently, the appeal was deemed meritless and rejected, affirming the impugned order.

This comprehensive analysis highlights the key legal aspects and arguments presented in the judgment regarding the non-payment of the Additional Duty of Customs on consignments cleared for DTA sale, leading to the dismissal of the appeal by the appellate tribunal.