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TMI Blog2018 (7) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... d been systematically clearing the goods without payment of duty in clandestine manner. In these circumstances, reasonable conclusion is that the appellant wanted to remove finished goods in clandestine manner in active connivance with his close relatives as they had already crossed SSI exemption limit - confiscation of finished goods and redemption fine thereupon upheld. The appellant are only contesting confiscation of raw material, packing material and finished goods and imposition redemption fine. It clearly shows that the appellant have accepted that there was clandestine removal of the goods and there was malafide intent to evade payment of duty. Appeal allowed in part. - Appeal No. E/60374/2018-EX - Final Order No. 62484/2018 - Dated:- 27-6-2018 - Hon ble Mr.Devender Singh, Member ( Technical ) For the Appellant : Shri R. k. Philips, Advocate For the Respondent : Shri Bhasha Ram, AR ORDER Per : Devender Singh Briefly, the facts of the case are that acting on an intelligence that M/s Real Pain India, Sonepat having manufacturing and trading activities at various premises were engaged in manufacture and clandestine clearance of paints and varnish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, Main Burari Road, Swaroop Nagar, Delhi 2.3 Sh. Harish Kumar, Prop. of M/s HR Paints was available at the premises where he informed that they were engaged in trading of Synthetic Enamel Paints, Automotive Paints, Wood Care Paints, Industrial Finish Paints etc of various brands such as REAL, NICE, MARS, IKKA, GALAXI, MARIGOLD, ASPA etc and his main purpose was of REAL and NICE brand paint from M/s Real Industrial Coating, Libaspur, Delhi and MARS and IKKA brand from M/s Real Paint India, Rai, Sonepat. Sh. Harish Kumar produced some sale and purchase documents for goods lying in the premises but the same could not be matched with the goods. No stock Register was being maintained in the premises. Finished goods valued at ₹ 59,20,984/- were seized by the officers on a reasonable belief that the same were kept there unaccounted and had been cleared without payment of duty and hence appreaed to be liable to confiscation. The seized goods were handed over to Sh. Harish Kumar for safe custody. Premises at A-789-790, Shastri Nagar, Delhi 2.4 Finished goods valued at ₹ 1,01,21,609/- lying there were also seized as Sh. Gulshan Kumar could not produce any documentary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... archies (loose slips) were found in the premises, which were resumed by the officers for further investigating. M/s. Matta Paint House, C-134, Gokulpur, Delhi 2.7 At the time of visit of the said premises on 13.09.2011, no responsible person was available to witness and join the proceedings and hence in the absence of any responsible person, the premises were sealed with the telephonic directions to Shri Chandra Matta, owner of the premises not to open the seal without the permission of the competent authority. The premises were re-visited by the officers on 15.09.2011 in the present of Shri Ram Chand, owner of the premises. The finished goods valued at ₹ 3,82,910/- were seized under Rule 24 of the Central Excise Rules, 2002 on a reasonable that the said goods were procured without any proper purchase invoice and the seized goods were handed over to Shri Ram Chand for safe custody. 3. During the course of investigation, statement of various persons, related to the affairs of the appellants activities were recorded and consequently it appeared that the main appellant firm M/s. Real Pain India, Rai under the control of Shri Gulshan Matta, proprietor had been indulgi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt brands of assorted size 1,01,21,609/- Seized M/s. Matta Pain and Hardware Store, A- 791/1, Shastri Nagar, Delhi Paints, Distemper, Strainer Boxes of different brands of assorted size 4.17.204/- Seized M/s. Raj Industrial Coating, 18/16, 25, 19/210/1, 21/1, Gram Akbarpur Majra, Main Palla Road, Delhi Finished goods 59,300/- Detained, converted in seizure on 05.03.2012. Total Rs.1,77,85,895/- 5. From the scrutiny of the kaccha parchies (loose slips), various documents and details retrieved from computer and from the statements tendered by various persons including Shri Harish Kumar Matta, Proprietor M/s. H.R.Paints, Shri Rambaksh Matta, Proprietor M/s. Real Industrial Coating, Delhi, Shri Gulshan Matta, Proprietor M/s. Real Pain India, Rai, Sonepat the value of clearance by the appellants firm at Rai was computed as under: - Year Clearance as per VAT retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , packing material and finished goods collectively valued at ₹ 30,52,122/- was also upheld along with redemption fine of ₹ 3,25,000/- in lieu of confiscation imposed by the adjudicating authority. Aggrieved from the order of the Commissioner (Appeals), the appellant have filed this appeal. 7. Ld. Advocate for the appellant submits that their only challenge is to the confiscation of raw material, packing material and finished goods collectively valued at ₹ 30,52,122/- and imposition of redemption fine of ₹ 3,25,000/-. He submitted that they are not contesting the rest of the impugned order. He contended that the raw material and packing material found in the premises were wrongly seized by the Department. The contention is that they had not taken any Cenvat credit on the said raw material and packing material. The Contention is that Rule 25 of Central Excise Rules under which these goods have been confiscated is meant only for finished goods. In this regard, he relied on the judgment of the Hon ble Punjab Haryana High Court in the case Annapurna Impex Pvt.Ltd.-2009 (2444) ELT 35 (P H). As for the finished goods, he argued that the goods were yet to be cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of confiscation of raw material and packing material, it is admitted fact that no Cenvat credit has been taken by the appellant. In that situation, there is force in the contention of the appellant that there is no provision in the Central Excise Act for confiscation of such raw material and packing material. Ld. AR could not show such a provision. In this context, it was held by the Hon ble Punjab Haryana High Court in the case Annapurna Impex Pvt.Ltd. (supra) as follows: 1.This appeal filed under Section 35G of the Central Excise Act, 1944 is directed against order dated 17-7-2008 passed by the Customs Excise and Service Tax Appellate Tribunal, New Delhi (for brevity the Tribunal‟). The Tribunal has endorsed the view taken by the Commissioner (Appeals) by holding that the Adjudicating Authority was not within its power to confiscate the goods worth ₹ 3,12,198/-. The value of other goods in respect of work in progress was ₹ 7,800/-. The Commissioner (Appeals) as well as the Tribunal held that there was no provision for confiscation of the raw material and the goods concerning work in progress. The final goods and the scrap were found lying in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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