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2017 (3) TMI 61 - AT - Central ExciseWho is liable to pay duty - Goods allegedly diverted in the local market in the guise of export - Bond executed by the non-existent merchant exporter - Penalty - During the course of investigation undertaken by DGCEI, it has emerged that the consignment of Cigarettes cleared for exports were never exported - Held that: - during the course of investigation it has emerged that merchant exporters were found to be non-existent, at the addresses submitted by them to the department. In such circumstances, it has to be presumed that no such merchant exporters existed at their declared addresses and the bonds executed by such merchant exporters have ceased legality to be a valid document. In the absence of valid bond from the merchant exporters, the liability for payment of excise duty reverses back to the original manufacturer who manufactured the goods i.e. the respondent in the present case. Manufacturer is required to pay Demand of duty with interest and penalty.
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