1995 (6) TMI 116 - AT - Central Excise

Summary

Issues:
Quantification of goods cleared without payment of duty clandestinely, allocation of duty based on date of clearance, reduction of penalty amount.

Analysis:
The appeal was against the order of the Collector of Central Excise, Cochin, regarding the quantification of goods cleared without payment of duty clandestinely. The Collector quantified the goods and demanded duty of Rs. 62,313.70 along with a penalty of Rs. 15,000. The appellant's advocate argued that the duty should have been quantified separately for the respective years when the carbon black was purchased. However, he could not provide evidence of when the goods were actually cleared. The Department's representative contended that duty should be charged based on the date of detection as the dates of clearance were unknown. The Tribunal observed that the duty was demandable for the quantity worked out by the Collector, and duty should be charged based on the actuality of the situation, as per Rule 9A(5). The Tribunal upheld the duty demand based on the rate applicable under Rule 9A(5) due to the lack of evidence regarding the dates of clearance.

The Tribunal acknowledged the reduction of the original demand from Rs. 59,98,788 to Rs. 62,313.70 after re-adjudication. Considering the circumstances and the lengthy proceedings, the Tribunal reduced the penalty from Rs. 15,000 to Rs. 5,000. The Tribunal found no infirmity in the duty demand based on Rule 9A(5) and dismissed the appeal, except for the modification of the penalty amount. The Tribunal emphasized the importance of charging duty based on the actual situation when the date of clearance is unknown, as per the provisions of Rule 9A(5).