2013 (11) TMI 437 - AT - Central Excise

Clandestine Removal of Goods Waiver of Pre-deposit Held that - It is seen that the slips are meticulously maintained by the appellant and are also carrying the time of entry of the Truck and exit of the same by writing IN & OUT - As such it is difficult to believe at this stage that the slips were for movement of the goods in the factory - the slips are also showing the gross weight of the goods as also net weight of the same - Prima-facie appellant is not entitled to unconditional stay appellant directed to deposit an amount of Rs.35.00 Lakhs as pre-deposit upon such submission rest of the duty to be waived till the disposal the recipients of clandestinely removed goods of M/s. Waryam Steel Castings Pvt. Ltd. are also required to be put to some terms of deposit - both the applicants directed to deposit 10% of the penalties imposed upon them - Partial stay granted.

Issues:
Confirmation of duty against M/s. Waryam Steel Castings Pvt. Ltd., imposition of penalties, ownership of weighment slips, reliance on documents during adjudication proceedings, movement of goods, admission of receipt of goods by other companies, imposition of penalties on recipients of clandestinely removed goods.

Confirmation of Duty and Penalties:
The judgment addresses the confirmation of duty amounting to Rs.1,63,47,753 against M/s. Waryam Steel Castings Pvt. Ltd., along with the imposition of penalties of equal amount. Additional penalties of varying amounts were imposed on other applicants related to the case. The Tribunal examined the evidence, including the recovery of weighment slips and statements from involved parties, leading to the initiation of proceedings and the passing of the impugned order.

Ownership of Weighment Slips:
The Tribunal considered the ownership of weighment slips crucial in determining the movement of goods. The weighment slips were recovered from the trading premises and were linked to M/s. Waryam Steel Castings Pvt. Ltd. The appellant accepted ownership but claimed the slips were for internal movement of goods within their factory. However, the meticulous maintenance of the slips, detailing truck entry and exit times, raised doubts about their internal use, leading to a prima facie disagreement with the appellant's contention.

Reliance on Documents and Adjudication Proceedings:
The legal representative of M/s. Waryam Steel Castings Pvt. Ltd. argued that the non-relied upon documents were not fully supplied during adjudication, affecting their ability to respond adequately. While most relied upon documents were provided later, some non-relied upon documents were still outstanding. Despite partial document supply, the representative contended that certain documents were crucial for their defense. The Tribunal acknowledged the document supply issue but proceeded with the case evaluation based on the available information.

Admission of Receipt of Goods:
Two companies, M/s. V.G. Steel Industries and M/s. Ajar Amar Steels, admitted receiving the allegedly clandestinely removed goods. Considering the admissions and the prima facie findings of clandestine removal against M/s. Waryam Steel Castings Pvt. Ltd., the Tribunal directed the recipients to deposit a percentage of the imposed penalties within a specified timeframe. The judgment aimed to ensure accountability not only for the primary party but also for the recipients involved in the transaction.

Conclusion:
The Tribunal directed M/s. Waryam Steel Castings Pvt. Ltd. to deposit a specified amount as a condition for hearing their appeal, with the waiver of the remaining predeposit amounts upon compliance. Similarly, penalties were imposed on the receiving companies, with deposit requirements set accordingly. The judgment highlighted the importance of evidence, document disclosure, and accountability in cases involving duty confirmation, penalties, and clandestine removal of goods, ensuring a fair and transparent adjudication process.

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