2006 (4) TMI 301 - AT - Central Excise

Summary

Issues:
1. Appellant's absence during the hearing.
2. Confiscation of goods due to removal without proper invoice.
3. Imposition of penalty and fine on the appellants.

Analysis:

Issue 1: Appellant's absence during the hearing
The appellant failed to appear during the hearing despite multiple notices and prior postponements. As a result, the appeal was taken up for final disposal in the absence of the appellants.

Issue 2: Confiscation of goods due to removal without proper invoice
Following investigations at M/s. Kumaran Textiles and M/s. Om Sivam Textiles, it was revealed that 1750 kgs. of cotton yarn were removed without payment of duty under a fake invoice. The original authority confiscated the goods and imposed a fine on M/s. Om Sivam Textiles to redeem the goods. The Commissioner (Appeals) upheld the confiscation and penalties, noting the contradictory statements by the appellant firm's proprietor and their involvement in allowing the removal of goods without a proper invoice.

Issue 3: Imposition of penalty and fine on the appellants
The appellant argued that the fine and penalty imposed were not applicable to them as they were not producers, manufacturers, or registered dealers. However, it was established that the appellants received excisable goods without a proper invoice, leading to confiscation under Rule 25 of the Central Excise Rules, 2001. The penalty and fine were deemed appropriate as the appellants were found to have abetted the clandestine removal of goods by M/s. Kumaran Textiles. The Tribunal upheld the lower authorities' decision, dismissing the appeal based on the findings.

In conclusion, the Tribunal found no infirmity with the impugned order passed by the Commissioner (Appeals) and dismissed the appeal, affirming the confiscation of goods and the imposition of penalties and fines on the appellants.