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2014 (2) TMI 112 - CESTAT NEW DELHIDuty demand - Clandestine removal of goods - Goods cleared without payment of duty - Held that:- Allegation against the appellant company is clandestine clearances without payment of duty of HDPE/PP Bags involving the duty of Rs. 7,77,256/-. The basis of this duty demand confirmed by the Additional Commissioner and upheld by the Commissioner (Appeals) is three documents recovered from the office of the appellant company in their factory premises in course of search. The first two documents are in form of computer generated charts giving details of dispatches during May’98 & July’98 - duty demand of Rs.5,65,466/- in respect of the entries in the dispatch charts for the month of May, 1998 and July, 1998, where no invoice numbers are mentioned, is not sustainable as the omission to mention the invoice number is either due to mistake of the person, who had prepared these charts as the goods were covered by other invoices or there were no dispatches as the sale orders had been cancelled. Allegation of non-accountal of 5,000 bags, it is seen that the appellant packed 500 bags in one bale and 10 such bales were in excess of the balance recorded in RG-I register. There is, thus, non-accountal of 5,000 bags in RG-1 register and hence, the same have been correctly confiscated. In view of this, confiscation of the bags not accounted in the RG-I register and imposition of redemption fine in lie of confiscation has to be upheld. However, no penalty would be imposable on this count as there is no evidence indicating that non-accountal was with the intention to clear the goods clandestinely - except for confiscation of 5,000 bags and redemption fine imposed in respect of the same, rest of the order is set aside - Decided in favour of assessee.
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