2003 (9) TMI 137 - AT - Central Excise

Summary

Issues involved: Confirmation of duty demand for clandestine removal, imposition of personal penalty, confiscation of seized goods.

Confirmation of duty demand for clandestine removal:
The Revenue alleged clandestine removal based on shortages detected during stock verification, specifically on dip readings of tanks. Appellants argued that the discrepancies were due to method differences in calculating stock, with the Revenue accepting a calculation mistake. They highlighted technicalities in tank dip readings and discrepancies likely in petroleum products storage. Appellants emphasized the need for tangible evidence in cases of clandestine removal, stating that the Revenue's case lacked such evidence beyond faulty dip readings and pseudo discrepancies.

Imposition of personal penalty:
The Commissioner confirmed a personal penalty along with duty demand. However, the Tribunal found no evidence of clandestine removal beyond alleged shortages based on flawed dip readings. It emphasized the legal requirement for Revenue to establish charges of clandestine removal with sufficient positive and corroborative evidence. The Tribunal noted the significant gap between possibilities and legal proof, leading to the dismissal of the penalty imposition.

Confiscation of seized goods:
The Tribunal set aside the confiscation of seized goods, as it found no substantial evidence supporting the allegations of clandestine removal. It emphasized the necessity for legal and unimpeachable evidence to prove guilt in such cases, ultimately concluding that there was no justification for the duty demand, penalty imposition, or confiscation of goods. The appeal was allowed, providing consequential relief to the appellants.