2007 (7) TMI 320 - HC - Central Excise

Summary

Issues involved: Appeal against order passed by Customs, Excise and Service Tax Appellate Tribunal regarding clandestine removal of goods and duty payment.

Details of the judgment:

1. The Tribunal found that the appellants admitted clandestine removal of goods without retraction, paid duty immediately upon detection, and did not contest the shortages in finished stock and duty paid godown. The partners' statements and signed packing slips indicated removal without payment of duty, and no duty paying documents were produced. The Tribunal dismissed the appeal based on these findings.

2. The plea regarding cancellation of orders could have been raised during the investigation, but the goods corresponding to the packing slip and lorry receipt were not found. The appellants did not contest this finding, leading to the Tribunal's conclusion of fraudulent conduct in the removal of goods without duty payment.

3. The Tribunal considered the appellants' arguments regarding substantial questions of law as academic, given the Commissioner's findings and the partner's unretracted statement. The appellants' capacity to manufacture the clandestine goods was not a relevant issue in light of the established facts. Case laws cited by the appellants were deemed inapplicable to the present proceedings, leading to the dismissal of the appeals.

4. The judgment highlighted the importance of the partners' statements, lack of retraction, and the interception of goods without duty payment. The Tribunal's decision was based on the evidence of clandestine removal and failure to produce necessary documents, ultimately resulting in the dismissal of the appeals.

5. The judgment emphasized the significance of the partners' signed documents, lack of contestation regarding shortages, and the immediate duty payment upon detection. The Tribunal's decision was upheld based on the established facts and the absence of merit in the appellants' arguments, leading to the dismissal of the appeals.