1981 (2) TMI 231 - Board - Central Excise

Summary

Issues:
1. Alleged clearance of iron and steel flats without payment of excise duty and without valid transport documents.
2. Confiscation of goods and truck under relevant provisions of Customs Act and Central Excises and Salt Act.
3. Compliance with Rule 233A regarding show cause notices.
4. Applicability of Tariff Advice in determining duty liability.
5. Imposition of personal penalty on the Mills.
6. Absolution of truck owner from liability due to lack of involvement in evasion.

Analysis:
1. The appeals involved allegations against a steel mill and a truck owner for clearing iron and steel flats without paying excise duty and without valid transport documents, leading to confiscation proceedings.
2. The Collector alleged that the steel mill cleared specific steel products without accounting for them in their records, while the truck owner was accused of transporting the goods without proper documentation, justifying confiscation under relevant legal provisions.
3. The appellants argued that the Collector failed to comply with Rule 233A by not issuing show cause notices to the alleged owners of the goods, which was deemed essential for confiscation orders to be valid.
4. The Board determined that the goods in question were classified as iron and steel flats, not bars as contended by the appellants based on Tariff Advice, leading to the conclusion that duty was indeed leviable on the goods.
5. Regarding the imposition of a personal penalty on the Mills, the Board agreed that no penal action was warranted based on a clarification received, but remanded the case to consider any subsequent clarifications from the Department.
6. In the case of the truck owner, the Board found that since the driver was absolved of active involvement in the duty evasion, there was insufficient basis to hold the owner liable for confiscation, leading to the allowance of the owner's appeal.

Conclusion:
The Board upheld the confiscation of the goods due to non-payment of excise duty and lack of valid transport documents but vacated the order based on non-compliance with Rule 233A. The Board also remanded the case regarding the personal penalty imposition on the Mills for further consideration. The truck owner's appeal was allowed based on the driver's lack of involvement in the evasion. Both appeals were disposed of accordingly.