2013 (11) TMI 82 - AT - Central Excise

Confiscation of Goods Redemption Fine Penalty on transporter Held that - Innocence cannot be appreciated when the offending vehicle carried two sets of bilties in 20 to 25 occasions as is revealed from adjudication order - fictitious bills were issued - no goods were consigned to them which is coming out of adjudication order - truck carrying unaccounted goods should be confiscated - There shall be no interference to this decision. But while confiscating the truck he has provisionally released the same imposing fine without recording life of the truck and year of manufacture - mechanical imposition of redemption fine cannot be justified - It would, be proper to impose a fine which is nearly 15% of the value of truck - there shall be waiver of penalty imposed on Shri Tapeshwer Singh Redemption fine reduced Decided partly in favour of Assessee.

Summary

Issues:
1. Liability of penalty and redemption fine on truck owner and carrier for carrying unaccounted goods.
2. Imposition of penalty on the carrier and the proprietor.
3. Confiscation of the truck and the imposition of redemption fine.

Analysis:

1. The main issue in this case revolves around the liability of penalty and redemption fine on the truck owner and carrier for carrying unaccounted goods. The carrier, Baba Devpuri Road Carriers, was found to have carried 15,000 kgs of Polyster chips, whereas the document only mentioned 3,000 kgs. The carrier claimed innocence, stating they were unaware of the extra goods loaded. However, the Adjudicating Authority found discrepancies, including the carrier receiving payment for 15,000 kgs, indicating involvement. The judgment upheld the confiscation of the truck but reduced the redemption fine to Rs. 56,000, considering the truck's value.

2. Another issue addressed was the imposition of penalties on the carrier and the proprietor, Shri Tapeshwer Singh. The penalty of Rs. 40,000 on Baba Devpuri Road Carriers was reduced to Rs. 30,000. It was deemed unnecessary to levy an additional penalty of Rs. 10,000 on Shri Tapeshwer Singh as the carrier was already penalized. The judgment emphasized that the carrier's penalty sufficed, and there was no need for further penalties on the proprietor, thereby waiving the penalty imposed on Shri Tapeshwer Singh.

3. Lastly, the judgment focused on the confiscation of the truck and the imposition of the redemption fine. While upholding the confiscation, the judgment found fault with the mechanical imposition of the redemption fine at Rs. 87,500, as it did not consider the truck's value. The redemption fine was reduced to Rs. 56,000, which was deemed more appropriate, representing around 15% of the truck's value. The appeal of Baba Devpuri Road Carriers was partly allowed, with adjustments made to the penalties and redemption fine, and the appeal of Shri Tapeshwer Singh was fully allowed, leading to the reduction in penalties and waiver of further penalties.