2009 (11) TMI 804 - AT - Central Excise

Summary

Issues:
Confiscation of Indian currency, Redemption fine, Penalty on MD

Confiscation of Indian currency:
The case involved the confiscation of Indian currency found at the residence of the Managing Director (MD) of the respondent company, allegedly accumulated from unaccounted sale proceeds of inputs. The show cause notice accused the company of selling goods at lower prices and receiving excess cash. The original authority confiscated the currency and imposed penalties. The Commissioner (Appeals) upheld the confiscation but allowed redemption on payment of a fine. The Tribunal noted that the show cause notice did not demand any duty or differential credit, and the provision for confiscation of sale proceeds of excisable goods did not apply in this case. Therefore, the confiscation of the currency was deemed unjustified, and the redemption fine was set aside.

Redemption fine:
The Commissioner (Appeals) had allowed redemption of the confiscated Indian currency upon payment of a fine. However, the Tribunal found that since the confiscation itself was not justified, the redemption fine imposed by the Commissioner was also set aside.

Penalty on MD:
The penalty of Rs. 72,000 imposed on the MD of the respondent company was challenged. The Tribunal observed that no appeal or cross-objection was filed by the MD himself, only by the company. As the penalty was upheld by the Commissioner (Appeals) and there was no separate challenge by the MD, the Tribunal did not interfere with the penalty imposed on the MD. The request to set aside the penalty on the MD was considered outside the scope of the cross-objection and was not accepted.

In conclusion, the Tribunal disposed of the appeal and cross-objections by setting aside the confiscation of Indian currency and the redemption fine, while maintaining the penalty imposed on the MD. The department's appeal was rejected, and the decision of the Commissioner (Appeals) was modified accordingly.