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Issues:
- Confiscation of M.S. Bars and penalty imposed - Confiscation and fine in lieu of confiscation of the truck Confiscation of M.S. Bars and Penalty Imposed: The case involved appeals against the confiscation of 2.335 M.T. of M.S. Bars and a penalty of Rs. 5000 imposed by the Commissioner of Central Excise. The appellants argued that the goods were taken out for weighment due to the unavailability of a weigh-bridge in their small factory. They contended that there was no intention to evade duty, citing previous debits provided for in invoices. However, the Department alleged clandestine removal without payment of duty, pointing to the lack of compliance with legal requirements. The Tribunal upheld the confiscation but reduced the fine to Rs. 2000 and the penalty to Rs. 1000, considering the failure to follow proper procedures despite previous debits. Confiscation and Fine in Lieu of Confiscation of the Truck: The second appeal was by the owner of the confiscated truck, challenging the fine in lieu of confiscation of Rs. 35,000. The owner argued that no show cause notice was issued to him, invalidating the order. The Department conceded the lack of notice to the truck owner but defended the confiscation based on the involvement in transporting non-duty paid goods. The Tribunal found the lack of notice to the truck owner as a fatal flaw, setting aside the confiscation of the truck and allowing the owner's appeal. The Tribunal also noted that the fine imposed on the truck owner was disproportionate compared to the fine and penalty on the manufacturing firm, the primary offender. In conclusion, the Tribunal upheld the confiscation of the M.S. Bars but reduced the fine and penalty. The confiscation of the truck was set aside due to the absence of a show cause notice to the owner, and the disproportionate fine was highlighted. The appellants were entitled to consequential relief as per the Tribunal's order.
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