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2017 (4) TMI 150 - AT - Central ExciseClandestine manufacture and removal - processed man made Fabric (PMMF) - confiscation - the said fabrics did not tally with the appellant s record and the same was lying unaccounted and stored with the intention to remove the same clandestinely without payment of Central Excise duty - Held that - there is no justification in the assessee s prayer to do away with the confiscation of the goods and the redemption fine imposed in case of confiscations, when the assessee M/s Kanchan Processor Pvt Ltd is unable to explain non-accountal of the goods, which have been quantified as 98190.06 mtrs of fabrics valued at ₹ 47,13,123/-. There is also no justification in the prayer of the Revenue for setting aside the findings and the decision arrived at by the Commissioner (Appeals) in the impugned order - decided against assessee. Clandestine removal - whole case is based on the sufficient evidences like private records stock verification, computer records etc which have been corroborated by respective statements of the transporters and purchasers of the goods - Held that - there is no scope to interfere with the confirmation of demand along with interest and imposition of equivalent penalty against the assessee namely Kanchan Processors Pvt Ltd. However, in the face of the fact that assessee has been imposed with the equivalent penalty of ₹ 86,01,211/- and after considering the totality of facts and circumstances and taking a lenient view, the penalties imposed on the other appellants namely M/s Kanchan Wooltex Pvt Ltd, Shri Jayesh Bangar and Shri Nilesh Bangar appear to be on higher side. We, therefore, reduce these penalties in case of M/s Kanchan Wooltex Pvt Ltd to 20% of the demand confirmed against the assessee M/s Kanchan Processor Pvt Ltd, which comes to ₹ 17,20,242 /-; and in case of Shri Jayesh Bangar and Shri Nilesh Bangar, penalties are reduced to 10% of the demand confirmed against the assessee M/s Kanchan Processor Pvt Ltd, which thus comes to ₹ 8,60,121 /-each. - appeal disposed off - decided partly in favor of appellants.
Issues Involved:
1. Demand of Central Excise Duty and penalties imposed on M/s Kanchan Processors Pvt Ltd and associated parties. 2. Confiscation of unaccounted processed man-made fabrics (PMMF) and imposition of penalties. 3. Appeals against Order-in-Original and Order-in-Appeal by both the assessee and Revenue. Detailed Analysis: Issue 1: Demand of Central Excise Duty and Penalties The judgment addresses the appeals filed by M/s Kanchan Processors Pvt Ltd and associated parties against the Order-in-Original dated 26.02.2009, which confirmed a demand of Central Excise Duty amounting to ?86,01,121/- along with interest. Equivalent penalties were imposed on Kanchan Processors Pvt Ltd, M/s Kanchan Wooltex Pvt Ltd, and individual directors Shri Nilesh Bangar and Shri Jayesh Bangar. The Tribunal, after reviewing the case records and submissions, upheld the penalties but reduced the amounts imposed on M/s Kanchan Wooltex Pvt Ltd to ?17,20,242/- and on Shri Nilesh Bangar and Shri Jayesh Bangar to ?8,60,121/- each, considering the totality of facts and circumstances. Issue 2: Confiscation of Unaccounted PMMF The case began with the confiscation of 1,83,842.80 meters of PMMF found unaccounted during a surprise visit by DGCEI officers, suspected to be intended for clandestine removal without duty payment. The Commissioner (Appeals) reviewed the discrepancies and ordered the release of 85,654.74 meters of fabrics, giving the benefit of the doubt due to apparent errors in stock measurement. However, the Tribunal found no justification to overturn the confiscation of the remaining 98,190.06 meters of fabrics valued at ?47,13,123/- and upheld the penalties and fines imposed. Issue 3: Appeals Against Order-in-Original and Order-in-Appeal The Tribunal first addressed the appeals filed by M/s Kanchan Processors Pvt Ltd and the cross-appeal by the Revenue against the Order-in-Appeal dated 19.12.2008. The Commissioner (Appeals) had reduced the penalty on M/s Kanchan Processors Pvt Ltd from ?6 lakhs to ?2 lakhs and set aside the penalty on Shri Nilesh Bangar. The Tribunal upheld the Commissioner (Appeals)' decision, dismissing both the assessee's and Revenue's appeals, stating that the Commissioner (Appeals) had rightly reduced the penalties and there was no justification for further relief or for restoring the original penalties. Conclusion: The Tribunal sustained the Order-in-Appeal dated 19.12.2008, dismissing the appeals filed by M/s Kanchan Processors Pvt Ltd and the Revenue. It modified the Order-in-Original dated 26.02.2009, reducing the penalties on M/s Kanchan Wooltex Pvt Ltd, Shri Jayesh Bangar, and Shri Nilesh Bangar, while dismissing the appeal by M/s Kanchan Processors Pvt Ltd. The appeals by M/s Kanchan Wooltex Pvt Ltd, Shri Jayesh Bangar, and Shri Nilesh Bangar were partly allowed, reducing their penalties as specified.
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