2018 (4) TMI 1448 - AT - Central Excise

Clandestine manufacture and removal - four trucks were carrying drinking water and irritated water under the brand name of Kingfisher and Kwality were seized which were having no duty paying in documents - seizure of goods with vehicle - Held that - there is no dispute on merits that appellant was engaged in activity of clandestine manufacturer of clearances on their goods. Therefore the demand confirmed in the impugned order is confirmed. As the appellant has submitted that they might have paid duty involved in the matter the same is required to be verified. As appellant was involved in the activity of clandestine manufacturing and clearances of goods therefore no immunity is granted with regard to the penalties - quantum of redemption fine reduced. Appeal allowed in part.

Summary

Issues: Appeal against confirmed duty demand due to clandestine manufacturing and clearance of goods without payment of duty, imposition of redemption fine and penalties.

Analysis:
1. Confirmation of Duty Demand: The appellant appealed against the confirmed duty demand resulting from clandestine manufacturing and clearance of goods without duty payment. The search conducted led to the seizure of trucks carrying water under specific brand names without proper duty documentation. The appellant did not contest their engagement in clandestine activities, leading to the confirmation of the duty demand by the Tribunal.

2. Verification of Duty Payment: The appellant suggested the possibility of having paid the duty involved, which necessitated verification through the production of relevant payment documents. If such documents are provided, the duty confirmed may be adjusted accordingly; otherwise, the duty demand as per the impugned order stands payable by the appellant.

3. Redemption Fine and Confiscation: The Tribunal addressed the redemption fine imposed on the appellant, reducing it in certain instances where the original amount was deemed excessive. The confiscation of vehicles involved in transporting non-duty paid goods was upheld, with adjustments made to the redemption fines to align with the circumstances.

4. Penalties Imposed: Due to the appellant's involvement in clandestine manufacturing and clearance activities, no immunity was granted concerning the penalties imposed. The Tribunal confirmed the penalties, considering the nature of the appellant's actions.

5. Final Disposition: The Tribunal disposed of the appeal with the aforementioned terms, emphasizing the confirmation of penalties and duty demand due to the appellant's engagement in clandestine activities. The adjustments made to redemption fines aimed to align the penalties with the circumstances of the case.

This detailed analysis of the judgment highlights the key issues addressed by the Tribunal, including duty demand confirmation, verification of duty payment, redemption fines, confiscation of goods and vehicles, and penalties imposed due to clandestine activities.