2003 (9) TMI 201 - AT - Central Excise

Summary

Issues:
1. Unaccounted quantity of final product found in factory stock.
2. Alleged clandestine removal of goods without payment of duty.
3. Confiscation of Indian Currency found in factory.
4. Adjudication by Additional Commissioner and subsequent appeal by Revenue.
5. Dispute over dropping of duty demand and release of Indian Currency.

Analysis:

1. The Central Excise officers visited the factory and found 6033 kgs of unaccounted Gurakhu. Additionally, incriminating documents suggested clandestine removal of 31,624.5 kgs without duty payment. Indian Currency of Rs. 8,00,000 was also seized from the factory.

2. The appellants admitted in writing to clearing goods without paying duty due to fund problems. They offered to pay the duty voluntarily and requested adjustment from the seized cash. Show-cause notice proposed confiscation, duty demand, and penalty imposition, which was adjudicated by the Additional Commissioner.

3. The Additional Commissioner released the seized Indian Currency but confiscated the excess Gurakhu with an option for redemption. A penalty was imposed, and the duty demand for clandestine goods was dropped due to lack of direct evidence.

4. The appellants accepted the confiscation and penalty but Revenue appealed against dropping the duty demand. The Commissioner (Appeals) reversed the decision, challenging the dropping of duty demand and release of Indian Currency.

5. The appellants argued that Revenue did not challenge the release of currency in their appeal memo. The Tribunal agreed, noting the clear admission of duty liability by the appellants. The Commissioner (Appeals) was justified in reversing the dropping of duty demand based on the appellants' written admissions.

In conclusion, the Tribunal directed the Revenue to release the balance of currency after adjusting the confirmed duty against the appellants. The appeal and stay petition were disposed of accordingly.