1995 (4) TMI 155 - AT - Central Excise

Summary

Issues involved: Appeal against confiscation of M.S. Ingots, duty demand, penalty imposition.

Confiscation of M.S. Ingots: The Collector confiscated 13.860 MTs of M.S. Ingots but allowed redemption on payment of a fine of Rs. 40,000. The appellant did not appeal against the non-recording of 13.680 MTs in the RG 1 Register. The Collector found that the appellant manufactured and cleared 387.910 M.T. Ingots without paying duty based on a "heat record" recovered from the unit, leading to duty demand on the unregistered quantity.

Clandestine Removal Allegation: The appellant argued that clandestine removal was not proven independently as required by Tribunal decisions, emphasizing that averages should not be the basis for determining quantity. The voluntary payment of duty by Shri Dharam Pal was contested as not implying agreement to the alleged facts. The Collector's conclusion relied on heat record analysis and averages, lacking specific evidence of actual unregistered production and clearance without duty payment.

Burden of Proof and Investigation: The Tribunal emphasized that production and removal without duty must be proven beyond reasonable doubt, not through conjecture. Shri Dharam Pal's statements did not explicitly confirm unregistered production and clearance without duty payment. The presence of heat records suggested potential unregistered manufacturing and clearance, but the investigating officer failed to establish this conclusively. Lack of investigation evidence led to the benefit of doubt favoring the appellant, resulting in setting aside the duty demand while confirming the confiscation and reducing the penalty to Rs. 5,000.