2001 (1) TMI 587 - AT - Central Excise

Summary

Issues:
1. Appeal against the order upholding duty demand, penalty, and confiscation.
2. Disputed removal of excisable goods without payment of duty.
3. Imposition of penalty and confiscation of goods and trucks.

Analysis:
The appeal was filed by M/s. Indore Steel & Iron Mills Ltd. against the order of the Commissioner (Appeals) upholding the demand of duty, penalty under Section 11AC of the Central Excise Act, and confiscation of goods and trucks. The Appellant's representative argued that the failure to debit excise duty was due to a clerical mistake, not an intention to evade duty. It was highlighted that the goods had been cleared under invoices, and there was no suppression of production or removal with intent to evade payment of duty. Reference was made to a letter from the Central Board of Excise and Customs regarding seizure not being warranted in certain cases. The Appellant contended that the penalty under Section 11AC was not justified.

The Departmental Representative contended that the excisable goods were indeed removed without payment of duty, which is against legal provisions. It was emphasized that excisable goods can only be removed after discharging duty liability, making the Appellant and the goods liable for penalty and confiscation.

The Tribunal, after considering the arguments, upheld the duty demand but reduced the penalty amount. It was noted that the goods were removed without debiting the duty, leading to the imposition of penalty under Rule 173Q(1)(b) and the liability of confiscation for the goods and trucks. However, considering the Appellant's plea and the absence of factors warranting penalty under Section 11AC, the Tribunal reduced the penalty amount and redemption fines. The Tribunal agreed that the penalty under Section 11AC was not applicable in this case. Ultimately, the appeal was partly allowed, with the penalty and redemption fines being reduced.

In conclusion, the Tribunal upheld the duty demand, imposed penalties under Rule 173Q(1)(b), and ordered the confiscation of goods and trucks. However, the penalties were reduced based on the circumstances of the case and the absence of factors warranting penalty under Section 11AC.