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2016 (1) TMI 339 - CESTAT NEW DELHI

2016 (1) TMI 339 - CESTAT NEW DELHI - 2016 (336) E.L.T. 358 (Tri. - Del.) - Confiscation of the seized goods and currency - Denial of provisional release of Cash - Held that:- the provisional release of the currency is sought by the appellant only to discharge the demanded duty liability along with interest so that their case can be settled by the Settlement Commission. We find that realizing the full admitted duty liability along with interest is in the interest of the Revenue. The appellant vi .....

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the amount for payment of duty for settling the case would only safeguard the interest of Revenue. - Appellant is eligible for provisional release of the cash seized on similar terms already considered by the Revenue while releasing the seized goods - Appeal disposed of. - Excise Appeal No. E/55861/2014-EX(DB) - Final Order No. A/53204/2015-EX(DB) - Dated:- 7-10-2015 - Sulekha Beevi C S, Member (J) And B. Ravichandran, Member (T) For the Appellant : Ms Seema Jain, Adv For the Respondent : Sh .....

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Rule 24 of the Central Excise Rules, 2002. The total value of finished goods, unfinished goods and raw materials is ₹ 98,01,350/-. An amount of ₹ 1,49,54,280/- in the form of currency was also seized by the officers under Section 110 of Customs Act, 1962. Later, on the request of the appellant, the finished goods, un-finished goods and the raw materials were released provisionally on submitting B-11 bond for an amount of ₹ 98,91,350/- with a bank guarantee of ₹ 24,72,838/ .....

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such admitted liability. The Settlement Commission while expressing interest in settling the case advised the applicant to approach jurisdictional Commissioner for release of seized amount. Consequently, the application was rejected by the Settlement Commission for non-compliance with the conditions laid down in the above Section as they could not make payment of admitted liability along with interest for settlement of the case. 3. Against the order of Settlement Commission, the appellant filed .....

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ized. Aggrieved by this order, the appellant has filed this appeal. 4. During the course of argument, ld. Counsel for the appellant narrated the chronological events of each stage in this case. She submitted that the ld. Commissioner erred in rejecting their request for provisional release of the currency seized on the ground that the provisions of Section 110 A of Customs Act, 1962 is not made applicable to the Central Excise. She argued that when the seizure was effected, the currency was seiz .....

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lease the seized goods emanates from the power to seize. The Manual further states that the goods seized may be released provisionally under bond with 25% of security or surety by the officer who is normally competent to adjudicate the case. Hence, the ld. Counsel for the appellant strongly contested the findings of the original authority that there is no provision under Central Excise Act, 1944 for provisionally releasing the currency seized as sale proceeds of non-duty paid goods. 5. Ld. Autho .....

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rrency to the appellant. The reason quoted by the ld. Commissioner is that there is no provision under Central Excise Act, 1944 to provisionally release the currency and it will also jeopardize the interest of the Revenue because of the involvement of huge duty and interest in this case. 8. Regarding the non-availability of requisite provision of law for provisional release of the seized currency under Central Excise Act, 1944, we find that the Commissioner is in error. We find that the seizure .....

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currency is made adopting the definition of "goods" as contained in Section 2(22) of the Customs Act, 1962 and considering it as "goods", the ld. Commissioner's observation that the definition of "goods" as per Section 2 (22) of the Customs Act, 1962, which includes currency, has not been made applicable to the Central Excise vide notification no.68/63-CE is factually incorrect. If this view is to be accepted, the seizure of currency in the present case itself .....

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on submitting B-11 Bond for ₹ 98,91,350/- and bank guarantee of ₹ 24,72,838/-. No legal authority has been quoted in the communication. The Department does not have a case that the provisional release of the seized goods as ordered on 16.08.2011 is not authorized by the law. Hence, applying a different treatment for the currency which is seized as goods (sale proceeds of non-duty paid goods) is not legally sustainable. 9. Ld. Authorised Representative could not explain under which pr .....

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trary to the guidelines mentioned in the Central Excise Manual and Department's own action for releasing the seized goods. Incidentally, we notice that the show cause notice dated 29.12.2011 issued proposing confiscation of the seized currency proposes such confiscation under Section 122 of the Customs Act, 1962. We find that though the said Section is not made applicable to Central Excise, it has been invoked by the officer to confiscate the currency. We find Section 34 of the Central Excis .....

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