2012 (8) TMI 601 - AT - Central Excise

Clandestine clearance of goods - non inclusion of the value of engine/motor in the value of Concrete Mixer Machine - Held that - As the appellant neither rebutted the allegation nor contended anything in support of their defence the lower authority has rightly held that 112 nos. of CMMs have been clandestinely removed without payment of duty and appropriate duty - remand the matter to the lower adjudicating authority with a direction to redetermine the duty liability on the 112 CMMs.

Summary

Issues: Alleged clandestine removal of goods without accounting for Central Excise duty and inclusion of value of engines/motors in the duty calculation.

Clandestine Removal Allegation:
The case involved the appellants being accused of clandestinely removing 112 Concrete Mixer Machines (CMM) without proper accounting or payment of Central Excise duty. The lower authority confirmed a demand of Rs.2,16,706 under Section 11A(1) of the Central Excise Act, 1944, along with an equal penalty. The appellants challenged this order, arguing that the allegation of clandestine removal should not stand as the value of motors was not included in the calculations. The Commissioner (Appeals) remanded the case back to the lower authority. The Tribunal noted that the appellants did not contest the allegation of removing the CMMs clandestinely, leading to a decision that appropriate duty was payable for the 112 CMMs. The Tribunal also highlighted that the power of remand by the Commissioner had been restricted by an amendment to the Central Excise Act, but the issue of value needed further consideration. Consequently, the matter was remanded for the lower authority to reassess the duty liability based on the inclusion of motor/engine value as directed by the Commissioner (Appeals).

Inclusion of Engine/Motor Value in Duty Calculation:
The allegations included the clearance of 41 CMMs with engines/motors without accounting for the motor/engine value, resulting in a lower Central Excise duty payment. The Commissioner (Appeals) directed a reevaluation of the duty liability concerning the inclusion of engine/motor value in the CMMs. The Tribunal acknowledged that neither party contested the remand order and emphasized the need to redetermine the value aspect. Although the power of remand had limitations, the Tribunal allowed the appeal by remanding the case to the lower adjudicating authority for a reconsideration of the duty liability in line with the Commissioner's directions. The Tribunal's decision to remand the matter for further assessment was based on the need to clarify the duty liability concerning the inclusion of engine/motor value in the CMMs, as highlighted in the Commissioner's order.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT, Kolkata addressed the issues of alleged clandestine removal of goods without accounting for Central Excise duty and the inclusion of engine/motor value in the duty calculation. The Tribunal's decision to remand the case for reassessment emphasized the importance of proper duty payment and accounting practices in compliance with Central Excise regulations.