2002 (9) TMI 589 - AT - Central Excise

Summary

Issues:
- Duty liability on exported P.P. bags without proof of export submission
- Penalty imposition for non-compliance with Central Excise Rules

Analysis:
1. Duty Liability on Exported P.P. Bags:
The appellants manufactured HDPE/P.P. bags and cleared a substantial quantity for export under bond without paying duty, as per AR.4s dated 2-5-97 and 4-5-97. However, they failed to provide proof of export within the stipulated period. Consequently, a show cause notice was issued to recover central excise duty of Rs. 1,50,500 on the bags, along with a penalty. The Asstt. Commissioner confirmed the duty and imposed a penalty of Rs. 10,000. The Commissioner (Appeals) reduced the penalty to Rs. 2,000 but upheld the duty liability. The appellants appealed against this decision.

2. Compliance with Central Excise Rules:
The Original Authority found discrepancies in the export process. The bags cleared for export were used for packing rice, indicating they were not directly exported. The address details in the invoices did not match the delivery location, and the bags were not exported as empty bags but filled with rice. The shipping documents did not link the exported goods to the AR.4s submitted. Furthermore, discrepancies were noted in the supporting manufacturer's name on export documents. The Asstt. Commissioner and the lower appellate authority confirmed these findings, rejecting the proof of export submitted by the appellants.

3. Judgment and Dismissal:
The appellate tribunal dismissed the appeal, noting that the appellants did not contest the authorities' findings. The proof of export was rightly rejected, leading to the duty liability and penal action due to the manipulation of export documents. The tribunal concluded that the appeal lacked merit, affirming the duty payment and penalty imposition.

In conclusion, the judgment upholds the duty liability on exported P.P. bags due to the absence of valid proof of export submission and confirms the penalty for non-compliance with Central Excise Rules. The decision emphasizes the importance of adhering to export procedures and providing accurate documentation to avoid duty obligations and penalties.