2013 (10) TMI 720 - AT - Central Excise

Appellate Tribunal Waives Pre-Deposit Requirement, Grants Stay on Recovery

The Appellate Tribunal, after reviewing the case involving the confiscation of goods and penalty imposition by the Joint Commissioner, found merit in the ... Confiscation of Goods – weighment of goods outside the factory premises - Waiver of Pre-deposit – Held that:- The appellant had general permission from the Central Excise authorities for outside weighment, but since he had gone for lunch, the same was not handed over to the driver, who was waiting for the same, confiscation of the goods is not sustainable, the goods had been cleared on payment of duty thus there is no question of recovery of duty once again. Prima facie there is merit in the appellant's plea that the goods loaded in the truck which had been seized were being taken to the Dharamkanta for weighment, as the officers on checking the records in the factory, found a weighment slip already prepared by the factory Manager - the appellant have a strong prima facie case in their favour - The requirement of pre-deposit of duty demand and penalty waived for hearing of the appeal and recovery stayed - stay granted. Issues: Confiscation of goods, penalty imposition, appeal against order-in-original, stay applicationConfiscation of Goods:The case involved the confiscation of goods loaded in a truck outside the appellant's factory by the Jurisdictional Joint Commissioner. The appellant, a manufacturer of MS Ingots, explained that the goods were meant for weighment at Dharamkanta and had a weighment slip issued by the factory Manager. Despite this, the Joint Commissioner ordered confiscation, redemption fine, and penalty. The Commissioner (Appeals) upheld this decision. However, the appellant argued that the confiscation was unjustified as the goods were intended for legitimate weighment purposes and were later cleared upon payment of duty.Penalty Imposition:In addition to confiscation, a penalty of Rs. 36,662/- was imposed on the appellant by the Joint Commissioner. The appellant contested this penalty, stating that there was no intention to evade duty payment, and the goods were eventually cleared with duty paid. The appellant sought a waiver of the penalty and pre-deposit of duty demand for the appeal process.Appeal Against Order-in-Original:The appellant filed an appeal against the order-in-original issued by the Jurisdictional Joint Commissioner, which included the confiscation of goods, imposition of penalty, and duty demand confirmation. The Commissioner (Appeals) upheld the original order, leading to the appeal to the Appellate Tribunal CESTAT NEW DELHI.Stay Application:During the hearing, the appellant's counsel requested a stay on the recovery of duty demand and penalty pending the appeal process. The appellant argued that they had a strong prima facie case in their favor, citing the existence of a weighment slip for the goods in question. The appellant's plea for a waiver of pre-deposit and stay on recovery was opposed by the Jurisdictional Joint Commissioner, who reiterated the findings of the Commissioner (Appeals).In the final judgment, the Appellate Tribunal, after considering submissions from both sides and examining the records, found merit in the appellant's argument. The Tribunal acknowledged the presence of a weighment slip prepared by the factory Manager, indicating the goods were intended for legitimate weighment. Consequently, the Tribunal waived the requirement of pre-deposit for duty demand and penalty, granting a stay on the recovery process pending the appeal. The stay application was allowed, providing relief to the appellant in this matter.