2004 (3) TMI 191 - AT - Central Excise

Penalty on owner of conveyance - Imposition of - Confiscation - Demand - Rate of duty - Applicability of

Summary

Issues:
- Confiscation of goods and trolla
- Imposition of penalties on respondents

Confiscation of Goods and Trolla:
The Revenue filed appeals against the Order-in-Appeal setting aside the confiscation of goods and trolla, and penalties on the respondents. The Central Excise officers intercepted a trolla carrying bars and rods without documents. A shortage of goods was found during a physical verification, and the Director of the company admitted the shortage. The Commissioner (Appeals) set aside the original order. The Revenue argued that the goods were removed without payment of duty, and penalties should be imposed. The Tribunal noted that the actual removal date was not available, so the duty rate applicable was the one on the date the duty was paid. The Tribunal upheld the confiscation of goods but reduced the redemption fine. A penalty was imposed on the company for the shortage of goods. However, no penalty was imposed on the owner of the trolla due to lack of evidence of knowledge about the confiscation.

Imposition of Penalties on Respondents:
The Tribunal considered the Revenue's arguments and found no evidence that the goods were cleared before the duty rate change. The Tribunal upheld the confiscation of goods due to the lack of proof of duty payment. A penalty was imposed on the company for the shortage of goods. The Tribunal reduced the redemption fine but did not impose any penalty on the owner of the trolla due to insufficient evidence of knowledge about the confiscation. The appeals were disposed of accordingly, maintaining the confiscation of goods but modifying the penalties imposed.