1991 (3) TMI 279 - AT - Central Excise

Summary

Issues Involved:
1. Imposition of penalty on the appellants under Rule 173Q for contravention of Rule 52A, read with Rule 173G.
2. Imposition of redemption fine on M/s. IMFA Ltd.
3. Imposition of penalty on M/s. Orissa Transport Service and M/s. Ajanta Transport Co. under Rule 210 for contravention of Rules 51 and 193.

Issue-wise Analysis:

1. Imposition of Penalty under Rule 173Q for Contravention of Rule 52A, read with Rule 173G:

The appellants contended that the confiscation of goods and imposition of penalties were not in accordance with law, arguing that the goods were temporarily stored due to non-availability of long-distance trucks. They claimed that gate passes showing destinations Hisar and Alwar were issued, and the goods were eventually transported to these destinations as per the gate passes. The Tribunal noted that the goods were indeed released and transported to the stated destinations, strengthening the appellants' plea. It was concluded that suspicion alone could not substitute for proof, and the benefit of doubt should go to the appellants. Thus, the imposition of penalties under Rule 173Q for violation of Rule 52A, read with Rule 173G, was set aside.

2. Imposition of Redemption Fine on M/s. IMFA Ltd.:

The Tribunal observed that since Rule 52A was not contravened, the redemption fines imposed were not in accordance with law. Additionally, the goods had already been released by the department based on the High Court's directions, and were no longer available for confiscation. Therefore, the imposition of redemption fines of Rs. 75,000/- and Rs. 1,00,000/- in the respective orders was set aside.

3. Imposition of Penalty on M/s. Orissa Transport Service and M/s. Ajanta Transport Co. under Rule 210 for Contravention of Rules 51 and 193:

The Tribunal upheld the penalties imposed on M/s. Orissa Transport Service and M/s. Ajanta Transport Co. under Rule 210 for contravention of Rules 51 and 193. The appellants' argument that the requirement of markings was dispensed with by the Madras Collectorate was not accepted, as the exemption applied only within that jurisdiction and no such exemption was given by the Bhubaneswar Collectorate. Therefore, the penalties of Rs. 1,000/- each imposed on the transport companies were confirmed.

Additional Points:

- The Tribunal set aside the confiscation of the truck bearing No. ORU 2064 and the imposition of a redemption fine of Rs. 10,000/- on M/s. Ajanta Transport Co., as the truck had been released by the High Court without any condition for its production before the Collector.
- No such confiscation and redemption fine were ordered in the case of M/s. Orissa Transport Service.

Conclusion:

The appeals were disposed of in the above terms, with penalties and fines being set aside where not in accordance with law, and confirmed where justified.