2001 (7) TMI 467 - AT - Central Excise

Summary

Issues:
Confiscation of copper wire, imposition of penalty, confiscation of Matador Van, clandestine manufacture and clearance of goods, provisional release of goods, justification for confiscation, payment of duty on removal of goods, reduction of fines or penalty.

Confiscation of Copper Wire:
The case involved the confiscation of copper wire valued at Rs. 2 lakhs with an option to redeem on payment of a fine of Rs. 10,000. Central Excise Officers found an excess quantity of 2.7 tonnes of copper wire during a physical verification, with more than one tonne loaded in a Matador Van. The appellant was accused of clandestine manufacture and clearance of goods, leading to the confiscation. The appellant argued that the excess stock was due to the timing of stock taking before the previous day's production could be entered in records. However, the Tribunal upheld the confiscation, stating that the appellant was removing goods without accounting for them or paying duty, and that the confiscation was justified.

Imposition of Penalty:
In addition to the confiscation of copper wire, a penalty of Rs. 10,000 was imposed on the appellant. The appellant contended that since the Matador Van had not left the factory, there was no evidence of planning to clear goods clandestinely without paying duty. The appellant argued that duty payment is only required upon removal of goods from the factory. However, the Tribunal found that the loading of unaccounted goods into the van indicated an attempt to remove goods without proper documentation or duty payment. The Tribunal upheld the penalty, stating that the appellant's explanation lacked substance and that the penalty was justified given the circumstances.

Confiscation of Matador Van:
The Matador Van was also confiscated with an option to redeem on a fine of Rs. 5,000. The appellant argued that since the goods in the van had already been provisionally released, they were not available for confiscation. However, the Tribunal cited a previous judgment allowing the confiscation of provisionally released goods. The Tribunal concluded that the appellant was attempting to remove goods without proper accounting or duty payment, justifying the confiscation of the van. The Tribunal also found no reason to reduce the fines or penalties imposed, considering the value of the goods involved.

Overall Decision:
The Tribunal confirmed the impugned order, rejecting the appeal. It upheld the confiscation of the copper wire and Matador Van, as well as the imposition of penalties, based on the findings that the appellant was involved in clandestine production and clearance of goods without payment of duty. The Tribunal found no fault in the lower authority's conclusions and determined that the fines and penalties were appropriate given the circumstances of the case.