2018 (8) TMI 163 - AT - Central Excise

Confiscation of goods - excesses of raw materials, semi-finished and finished goods found in the premises of appellant - appellant contention is that for raising the demand or for proposing confiscation of goods found in the trading premises which were procured by trader appellant on lawful invoices, the burden was on revenue to prove that they were cleared without payment of Central Excise duty and that such burden was not discharged by the revenue - it was also contended by appellant that these were not contravening goods - Held that - The goods found in the trading premises were beyond the jurisdiction of Central Excise Officers - also, the contentions raised by learned Counsel for appellant are sustainable in law - appeal allowed - decided in favor of appellant.

Issues:
- Central Excise duty demand on goods found in trading premises
- Confiscation and imposition of redemption fine on goods in trading premises
- Central Excise duty demand on manufacturing unit
- Personal penalty imposed on individual
- Seizure and confiscation of finished goods, raw materials, and semi-finished goods in manufacturing premises

Central Excise duty demand on goods found in trading premises:
The case involved the seizure of goods in trading premises and a demand for Central Excise duty. The appellant argued that the goods were purchased from various manufacturers and traders with valid invoices, making them duty paid goods. The appellant contended that the burden was on the revenue to prove that the goods were cleared without payment of Central Excise duty, which was not discharged. The Tribunal found that the goods in the trading premises were beyond the jurisdiction of Central Excise Officers, and the contentions raised by the appellant were legally sustainable. As a result, the impugned order was deemed unsustainable, and the appeals were allowed.

Confiscation and imposition of redemption fine on goods in trading premises:
The appellant challenged the confiscation and imposition of redemption fine on goods found in the trading premises. The Tribunal accepted the appellant's arguments that the goods were purchased with valid invoices and were duty paid. It was held that the impugned order was not sustainable, leading to the setting aside of the order and allowing all appeals filed by the appellants.

Central Excise duty demand on manufacturing unit:
Regarding the Central Excise duty demand on the manufacturing unit, the appellant argued that the demand was not sustainable in law as the goods seized were duty paid. The Tribunal agreed with the appellant's contentions, stating that the impugned order was not sustainable. Consequently, the order was set aside, and all appeals were allowed.

Personal penalty imposed on individual:
The case involved the imposition of a personal penalty on an individual. The Tribunal noted that the learned Commissioner (Appeals) had reduced the penalty on the individual, but did not interfere with the remaining part of the Original Authority's order. The appellant preferred an appeal before the Tribunal, which ultimately set aside the impugned order and allowed all appeals filed by the appellants.

Seizure and confiscation of finished goods, raw materials, and semi-finished goods in manufacturing premises:
The issue of seizure and confiscation of finished goods, raw materials, and semi-finished goods in the manufacturing premises was raised. The appellant argued that the goods were not liable for confiscation as they had not crossed the stage of manufacture or had not been removed from the factory. The Tribunal found the contentions raised by the appellant to be legally sustainable and accepted them. Consequently, the impugned order was set aside, and all appeals filed by the appellants were allowed, entitling them to consequential relief as per law.

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