2009 (7) TMI 1124 - AT - Central Excise

Summary

Issues:
1. Imposition of redemption fine and penalty on Khandelwal Industrial Enterprises.
2. Imposition of redemption fine on Ambesh Kumar Bansal, Truck Owner.

Analysis of Issue 1:
The appeal by Khandelwal Industrial Enterprises challenges the imposition of a redemption fine of Rs. 25,000/- and penalty of Rs. 5,000/-. The firm was involved in manufacturing excisable goods for export, claiming exemption from registration and following certain procedures. However, their consignment valued at Rs. 14,34,600/- was intercepted without accompanying documents. The original authority confiscated the goods and imposed fines and penalties. The Commissioner (Appeals) upheld these decisions. The argument that exemption from registration allows for no record maintenance and transport without documents was refuted. The Tribunal found the confiscation of goods and the vehicle justified, along with the fines and penalties imposed, deeming them not excessive.

Analysis of Issue 2:
The appeal by Ambesh Kumar Bansal, Truck Owner, challenges the redemption fine of Rs. 5,000/- imposed on the vehicle used for transport. The vehicle was transporting goods without proper documents, leading to its confiscation and the imposition of the fine. The Tribunal considered the justification for confiscation of the vehicle and the fine imposed. It was concluded that the redemption fine was not excessive and was warranted in the circumstances. The penalty imposed on the applicant firm was also deemed justified and not excessive. Consequently, the appeals were rejected as they failed to establish grounds for interference with the original decisions.

This judgment highlights the importance of compliance with procedural requirements even when exemptions are claimed, emphasizing the need for maintaining records and following necessary documentation for goods transport. The Tribunal upheld the original decisions regarding confiscation, fines, and penalties, emphasizing the justifiability of the actions taken in response to non-compliance with regulatory procedures.