2018 (1) TMI 957 - AT - Central Excise

Issuance of Registration Certificate - manufacture of Branded Pan Masala & Branded Scented Tobacco - N/N. 35/2001-CE (NT) dated 26/06/2001 - Held that - There is no dispute of the fact that the appellant applied for registration on 05/09/2013 and as per the N/N. 35/2001-CE (NT) dated 26/06/2001 the period of 7 days expired on 17/09/2013 - Once the Notification prescribes the period within which the registrations has to be granted the registration would be deemed to have been granted on expiry of the period prescribed in the Notification. As such when the Officers visited the factory after the expiry of the said period it has to be held that the registration was deemingly given to the assessee thus not justifying any confiscations or penalties imposed - appeal allowed - decided in favor of appellant.

Issues:
1. Delay in issuance of registration certificate by Central Excise Department.
2. Seizure of goods and initiation of proceedings for manufacturing excisable goods without proper registration.
3. Confiscation of goods, imposition of penalties, and appeal against the order.

Issue 1: Delay in issuance of registration certificate
The appellant applied for registration on 05/09/2013, and as per Notification No.35/2001-CE (NT), the registration should have been granted within 7 days. However, the registration was not issued by 12/09/2013. The Officers visited the factory on 18/09/2013 and found manufacturing activities ongoing. The Appellate Authority observed that the appellant did not wait for proper registration before commencing production, leading to consequences. The Commissioner noted that the appellant's haste in starting production without proper registration justified the confiscation of goods and imposition of penalties.

Issue 2: Seizure of goods and proceedings for manufacturing without registration
Based on the visit to the factory on 18/09/2013, the Officers seized goods, raw materials, finished products, and machines, alleging manufacturing of excisable goods without proper registration. A Show Cause Notice was issued, leading to an order by the Assistant Commissioner confiscating goods valued at ?45,105.00, imposing Central Excise duty, redemption fines, and penalties under Central Excise Rules. The Appellate Authority set aside the confiscation of machines and one penalty but upheld the confiscation of goods and another penalty, leading to the appellant's appeal.

Issue 3: Confiscation of goods, penalties, and appeal against the order
The Appellate Tribunal noted that the appellant applied for registration within the prescribed period, and the visit by Officers after the expiry of the registration period implied the registration was deemed to have been granted. Therefore, the confiscations and penalties imposed were not justified. The Tribunal set aside the impugned order, allowing the appeal with consequential relief to the appellant.

In conclusion, the judgment dealt with issues related to the delay in registration issuance, seizure of goods for manufacturing without proper registration, and the subsequent confiscation of goods and imposition of penalties. The Tribunal found that the appellant's registration was deemed to have been granted after the prescribed period, rendering the confiscations and penalties unjustified, leading to the appeal being allowed with relief to the appellant.

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