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2018 (1) TMI 1085 - AT - Central ExciseClandestine removal - seizure of goods - redemption fine - penalty - Rule 25 of Central Excise Rules, 2002 - Held that - provisions of Rule 25 of Central Excise Rules, 2002 are applicable to the goods manufactured by the appellant - Admittedly, raw material and semi-finished goods cannot be confiscated as held by this Tribunal in the case of Anchal Prints Pvt. Ltd. Vs. CCE, Surat-I 2007 (10) TMI 532 - CESTAT, AHMEDABAD - confiscation of raw material and semi finished goods recovered during the course of search from M/s Bentex Control & Switchgear Co. set aside - redemption fine also set aside. The redemption fine has been imposed on the finished goods found in the possession of M/s Bentex Control & Switchgear Co. which was not recorded in the statutory record and finished goods cleared by M/s Bentex Control & Switchgear Co. were found in the premises of co-appellants which has been cleared by M/s Bentex Control & Switchgear Co. without payment of duty - It is a fact on record that the modus-operandi is that the appellant is clearing goods without payment of duty without recording the same in records. Therefore, in the facts and circumstances of the case, the goods found unaccounted in the statutory record is liable for confiscation - confiscation upheld. Penalty u/r 25 of CER, 2002 - Held that - the co-appellant have received the goods on which no duty has been paid at the time of clearance. Therefore, the same are rightly confiscated in terms of Rule 25 of Central Excise Rules, 2002 and redemption fine is rightly imposed on the said goods. Redemption fine on raw material and finished goods is not imposable but the redemption fine on finished goods is affirmed - Appeal allowed in part.
Issues:
- Imposition of redemption fine on goods seized during investigation - Applicability of Rule 25 of Central Excise Rules, 2002 on raw material and finished goods - Confiscation and imposition of redemption fine on finished goods found unaccounted - Confiscation and imposition of redemption fine on goods received without duty payment Analysis: 1. Imposition of Redemption Fine on Seized Goods: The appellants challenged the imposition of redemption fine on goods seized during the investigation. The Tribunal considered the case of M/s Bentex Control & Switchgear Co. where raw material and semi-finished goods were confiscated. Referring to Rule 25 of Central Excise Rules, 2002, the Tribunal held that raw material and semi-finished goods cannot be confiscated, setting aside the redemption fine on these items. 2. Applicability of Rule 25 on Raw Material and Finished Goods: The appellants contended that redemption fine should not be imposed on raw material and semi-finished goods as per Rule 25. The Tribunal cited the case of Anchal Prints Pvt. Ltd. and ruled that Rule 25 applies to manufactured goods. Consequently, the redemption fine on raw material and semi-finished goods was set aside. 3. Confiscation and Redemption Fine on Unaccounted Finished Goods: The Tribunal examined the imposition of redemption fine on finished goods found unaccounted for in the statutory record of M/s Bentex Control & Switchgear Co. The Tribunal noted the clandestine clearance of goods without duty payment and upheld the confiscation and redemption fine on these finished goods, citing the case of K.K. Polycolor India Ltd. 4. Confiscation and Redemption Fine on Goods Received Without Duty Payment: Regarding goods received without duty payment, the Tribunal affirmed the confiscation and redemption fine based on Rule 25 of Central Excise Rules, 2002. The decision was made considering that duty had not been paid on these goods at the time of clearance. 5. Final Decision: In conclusion, the Tribunal partially allowed the appeal of M/s Bentex Control & Switchgear Co., setting aside the redemption fine on raw material and affirming it on finished goods. For the co-appellants, the Tribunal upheld the impugned order, resulting in the dismissal of their appeals. This detailed analysis of the judgment provides a comprehensive overview of the issues raised, the legal arguments presented, and the Tribunal's decisions on each matter, maintaining the legal terminology and significant details from the original text.
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