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TMI Blog2008 (12) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... ventive officers of the department. The vehicle and the excisable goods laden on it were seized on the reasonable belief that the vehicle carried non-duty paid goods and, both the excisable goods and the truck were liable for confiscation. It was found that the goods were covered by an invoice issued by M/s. Andavar Polymers, Abishekapakkam (henceforth, also AP) whereas the goods had been manufactured and cleared by M/s. Shri Amman Polyethene, Mettupalayam (SAP). Evidences were collected in the form of statements from responsible functionaries of SAP and AP. Statements were also recorded from the driver of the truck Shri A. Rajagopal and the owner of the truck Shri V. Palanisamy. The seized goods were allowed to be cleared, on provisional b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CER. He imposed a penalty of Rs. 5000/- on Shri A. Rajagopal, driver of the vehicle under Rule 26 of the CER. Impugned dues were appropriated from the securities deposited by the appellants. SAP, AP, Shri A. Rajagopal and Shri V. Palanisamy, owner of the vehicle have filed appeals. 3. In the impugned order, Commissioner (Appeals) reduced the penalty of Rs. 80,248/- imposed on SAP under Section 11AC of the Act to Rs.15,000/- and reduced the penalty imposed under Rule 25 of the CER to Rs. 5000/-. Penalty of Rs. 5000/- imposed on AP under Rule 26 of CER was reduced to Rs. 2000/-. The demand of duty of Rs. 56,930/- relating to the clandestine clearances made by SAP in the past was sustained. He vacated the demand of Rs. 23,318/- in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Rule 173Q read with Section 11AC had been set aside as the respective amounts of penalty relatable to Section 11AC and Rule 173Q were not clear from the order. The fine of Rs. 30,000/- ordered towards the excisable found liable for confiscation is challenged on the ground that the goods were available with them and the original authority had not required them to produce them before him, in terms of the bond executed by SAP, before the impugned fine was ordered. The authorities had not established that the owner or driver of the vehicle had been aware that the vehicle was being used for transporting excisable goods liable for confiscation. Therefore the finding of liability, of the truck involved, to confiscation under Section 115 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h with documentary evidence that goods seized as well as the goods found to have been clandestinely cleared earlier had been manufactured by SAP as a job worker. As no valid challenge has been raised against the duty demanded, a penalty equal to the same is imposable on the assessee. As SAP is liable to pay penalty equal to the duty demanded on goods found to have been clandestinely cleared, in view of the ratio of the Apex Court's judgment in Dharmendra Textile Processors (supra), the penalty of Rs.15,000/- imposed under Section 11AC is enhanced to Rs. 56,930/-. No other penalty is warranted on this account on SAP in view of this penalty under Section 11AC. As regards the fine of Rs. 30,000/- ordered towards the value of the of PPR found l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s various laws such as the Sales Tax Act, Central Excise Act etc. Unless the requirements under various laws relating to transport of goods are satisfied, the goods under transport are at the risk of being intercepted and seized by the concerned enforcement agencies. Therefore the driver has to be held to have been aware that the goods on board the truck was liable to confiscation. It is so held. I find that the lower appellate authority has been fair as regards the fine imposed towards the value of the vehicle found liable for confiscation and the penalty. The owner of the vehicle was found liable to a fine of Rs. 30,000/- imposed in this regard and the driver, a penalty of Rs. 2000/- imposed on him. No mitigating circumstances are pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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