2000 (6) TMI 619 - AT - Central Excise

Summary

Issues involved:
The judgment involves issues related to the demand of duty on 'Himtaj Oil' removed without payment, confiscation of goods and Indian Currency, personal penalties, correct classification of goods, and the justification of penalties imposed.

Demand of Duty on 'Himtaj Oil' and Confiscation of Goods:
The Commissioner confirmed a duty demand on 'Himtaj Oil' removed without payment, based on seized documents and goods. Goods were provisionally released upon executing a Bond. Confiscation of goods and imposition of penalties were ordered. Excisable goods seized from various places were also released with redemption fines and penalties imposed.

Confiscation of Indian Currency and Personal Penalties:
Indian Currency seized from different premises was confiscated under the Customs Act. A substantial personal penalty was imposed on the appellants under Rule 173Q. Appellants deposited a significant amount of duty to settle the matter, leading to a dispute over the justification of penalties and confiscation.

Classification Dispute and Legal Challenges:
A dispute existed regarding the correct classification of 'Himtaj Oil' as Perfume Oil or Ayurvedic Medicament. Legal challenges were raised against the confiscation of seized goods and Indian Currency, with arguments presented on the lack of evidence linking the currency to duty evasion.

Judgment and Relief Granted:
The Tribunal found the confiscation of Indian Currency unjustified due to lack of evidence linking it to duty evasion. The correct duty amount was recalculated based on the classification of 'Himtaj Oil' as Ayurvedic Medicament. Confiscation of goods from the factory premises was set aside, and personal penalties were reduced considering various factors, leading to a partial allowance of the appeal.