1999 (9) TMI 391 - AT - Central Excise

Summary

Issues:
- Confiscation of sewing threads
- Admissibility of Proforma Credit under Rule 56A(5)

Confiscation of Sewing Threads:
The case involved the confiscation of a quantity of spool of sewing threads due to alleged suppression of production figures and clandestine removal of goods. The appellants argued that the excess stock was due to storage constraints and not for clandestine purposes. The Commissioner (A) upheld the confiscation, citing non-compliance with Rule 56A. However, the Tribunal found no evidence of clandestine activity and accepted the explanation provided by the appellants, leading to the setting aside of the confiscation.

Admissibility of Proforma Credit:
Regarding the Proforma Credit issue, the appellants had applied for credit under Rule 56A(5) but had not obtained permission before availing it. Additionally, they failed to send D3 intimations and received consignments before making the application. The Tribunal concluded that the Proforma credit was wrongly taken, as permission was not granted and procedural requirements were not met. Consequently, the denial of Proforma credit was upheld, and the appeal was partly allowed with appropriate relief.

Separate Judgment:
No separate judgment was delivered by the judges in this case.