2001 (2) TMI 718 - AT - Central Excise

Summary

Issues:
1. Confirmation of duty against the appellants for clandestine manufacture and removal of biscuits.
2. Imposition of penalty and confiscation of unaccounted biscuits.
3. Challenge to the order based on lack of strict proof of clandestine removal.
4. Dispute over ownership of documents recovered from residential premises.
5. Establishment of procurement, production, and sale of biscuits by the Revenue.
6. Rebuttal of the appellants' claim regarding the documents' ownership.
7. Comparison with previous Tribunal decisions lacking sufficient evidence.
8. Conclusion on the charges of clandestine manufacture and removal.

Detailed Analysis:
1. The appellants were involved in manufacturing biscuits under a specific classification and benefiting from an exemption. The Commissioner confirmed duty of Rs. 10,86,887.23 against them for clandestine activities during 1991-92, imposing penalties and confiscating unaccounted biscuits valued at Rs. 31,786.00 with a redemption fine of Rs. 5,000.00.

2. Central Excise Officers found incriminating documents and excess biscuits during a visit to the appellants' factory and residential premises, leading to show cause notices and the impugned order by the Commissioner.

3. The appellants challenged the order, claiming it was based on surmises and conjectures without strict proof of clandestine removal, disputing the ownership of documents recovered from a partner's residence and challenging the penalty and confiscation.

4. The Revenue relied on seized documents to establish procurement, production, and sale of biscuits by the appellants, which the appellants failed to rebut effectively.

5. The appellants' argument that the documents did not belong to their factory but to other biscuit manufacturing units was rejected as the documents clearly related to the production of specific biscuit brands manufactured only by the appellants.

6. The Tribunal found the evidence presented by the Revenue regarding procurement, production, and sale of biscuits to be convincing, unlike previous cases lacking sufficient proof, leading to the rejection of the appeal.

7. The Tribunal concluded that the charges of clandestine manufacture and removal against the appellants were established based on the evidence of seized records indicating production and clearance of biscuits matching surreptitious removal figures.