2017 (2) TMI 879 - AT - Central Excise

Confiscation of Indian Currency - whether there was sale of illegally manufactured goods and the currency, which are confiscated are the sale proceeds? - Held that - The Revenue fails to prove that Indian Currency of ₹ 23.15 lacs is the sale proceeds of excisable goods illegally manufactured and cleared so - The documents produced in this regard by the appellants like the Agreement to Sell , copy of Resolution of Board of Directors, and affidavit of Agreement to Sell cannot be taken as false evidences - Further the Commissioner, Income Tax (Appeals), has also ruled that the said amount is not an extra income, from sale of illicit manufacturing and clearance of excisable goods but is the part of the payments made by M/s. M.D. Buildwell (P) Ltd. - confiscation of currency set aside. Confiscation of excess copper scrap - Held that - various explanations mentioned by the assessee appellant and the pleadings that such estimation of the excess is an eye estimation only have not been appropriately considered by the Commissioner (Appeals) - matter to be remanded. Appeal disposed off - part matter allowed - part matter on remand.

Summary

Issues:
Confiscation of seized Copper Scrap and Indian Currency; Appeal against Order-in-Appeal and Order-in-Original; Discrepancy in stock estimation; Validity of evidences presented; Confiscation of excess copper scrap; Redemption fine and penalties imposition.

Confiscation of Seized Copper Scrap and Indian Currency:
The Order-in-Original dated 30-3-2007 confiscated seized Copper Scrap and Indian Currency. The appeal memorandum argued that the Indian Currency was fully accounted for, with a portion from a legitimate sale and the rest as cash-in-hand. The discrepancy in stock estimation was challenged, citing relevant case laws. The Tribunal found the Revenue failed to prove the currency was from illegal activities, considering supporting documents and an Income Tax Commissioner's ruling. Consequently, the confiscation was set aside.

Validity of Evidences Presented:
The appellants' explanations regarding the excess copper scrap confiscation were not adequately considered by the Commissioner (Appeals). The Tribunal ordered a fresh examination of all responses for a de novo decision. The confiscation, redemption fine, and penalties were set aside pending a new decision by the Commissioner (Appeals) after giving a personal hearing to the appellants.

Conclusion:
The Tribunal set aside the confiscation of Indian Currency and the excess copper scrap, directing the return of the currency to the appellant. The case regarding the seized copper scrap was remanded back to the Commissioner (Appeals) for a fresh decision. The judgment emphasized the importance of proper consideration of evidence and legal principles in such matters.