Technical rectification in excise order modifies duty, confiscation and penalty findings while preserving clandestine removal relief and penalties

Technical mistakes in the operative portion were corrected without affecting the merits. The final order was modified to set aside the duty demand on one part of the dispute and remand the matter for fresh computation of clearances. Confiscation of certain airconditioners, fans and deep freezers, together with the related redemption fine, was also set aside. At the same time, the demand and penalty relating to alleged clandestine removal, and the confiscation of airconditioners seized from residential premises along with duty and penalty under Rule 173Q, were maintained. The rectification application was allowed with partial relief to both sides.

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Issues: Whether the final order required rectification of technical mistakes in the portion dealing with duty demand, confiscation and penalty, and whether the operative part of the order had to be modified accordingly.

Analysis: The mistakes pointed out were accepted as technical in nature and not affecting the merits of the controversy. The operative portion was corrected to reflect that the demand of duty of Rs. 12,80,542.50 was set aside and the matter remanded for fresh computation of clearances. The confiscation relating to 36 airconditioners, 4 fans and 4 deep freezers with redemption fine was also corrected and set aside, while the demand of Rs. 58,44,825 with penalty for clandestine removal and the confiscation of 24 airconditioners seized from the residential premises, along with duty and penalty under Rule 173Q, were maintained.

Conclusion: The rectification application was allowed and the final order was modified in the terms recorded, resulting in partial relief to both sides with the Revenue securing correction of the operative order.

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