2013 (10) TMI 615 - AT - Central Excise

Clandestine Removal of Goods Waiver of Pre-deposit Held that - The goods were removed from the factory premises of the Applicant without payment of duty - the particulars of vehicles were also mentioned on the sheets and weighment Supervisor confirmed that the entries were for clearances from the factory - a large number of vehicles that carried goods from Dankuni godown to M/s. Rosedale, Kolkata also crossed Palsit toll plaza, the toll collecting point on NH2 on way from Durgapur to Kolkata, on the same very day the dispatch point was shown as Durgapur and receipt point was shown as Rajarhat - goods were actually cleared from factory and not from Dankuni - the details are available at various loose sheets recovered from the premises of the Applicant - both the sides have produced evidences in favour of them and the same can be examined at the time of final disposal of the Appeal - the Applicant has not been able to make a case for full waiver of the pre-deposit and therefore we direct the applicant to pay Rs.12.00 Lakhs upon such submission rest of the duty to be waived till the disposal Partial Stay granted.

Summary

Issues:
Seeking waiver of pre-deposit of duty and penalty imposed under Section 11AC of Central Excise Act, 1944.

Analysis:
The case involved an application for the waiver of pre-deposit of duty amounting to Rs.48,61,356/- and an equal penalty under Section 11AC of the Central Excise Act, 1944. The appellant's advocate argued that the demand notice was based on loose documents recovered during a search operation at the appellant's premises. The advocate contended that the allegations of duty evasion were primarily supported by loose slips mentioning transactions with specific parties. The advocate further argued that the evidence relied upon lacked corroboration and independent verification. Additionally, it was highlighted that no discrepancies were found during the physical inspection of the factory premises on the day of the search operation.

The Revenue's representative, on the other hand, supported the findings of the adjudicating authority, stating that the duty demand was substantiated by incriminating documents, statements from third parties, and confessional statements. After hearing both sides and examining the records, the adjudicating authority concluded that goods worth Rs.48,61,356/- had been removed from the factory without payment of duty. Specific details from the loose sheets recovered during the search operation were cited to support this conclusion, including references to transactions with particular entities and corroborative information from a weighment supervisor. The authority also noted discrepancies in dispatch and receipt points on consignment notes, indicating the actual clearance of goods from the factory premises.

Ultimately, the Tribunal found that while both parties presented evidence supporting their respective positions, a full waiver of the pre-deposit was not justified. The appellant was directed to pay Rs.12.00 Lakhs within eight weeks, with the remaining dues being waived upon compliance. The recovery of the balance dues was stayed pending the appeal process. The Tribunal emphasized that the evidentiary issues and conflicting claims would be further examined during the final disposal of the appeal, setting a reporting deadline for compliance.