Finality of prior factual findings barred confiscation and penalty for alleged clandestine removal of seized goods.

An identical factual issue cannot be reopened in confiscation and penalty proceedings once a prior appellate order has finally held that the seized goods from the trading premises were not clandestinely removed goods of the manufacturer. Because the present proceedings rested on the same factual foundation, and the earlier decision had already rejected the proposed treatment of the goods as manufactured clearances merely to cross the exemption limit, the issue was treated as concluded. The confiscation and penalties were therefore unsustainable and were set aside, granting full relief to the appellants.

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Issues: Whether the seized goods could be treated as clandestinely removed goods of the manufacturer so as to justify confiscation and penalty when the same factual issue had already been decided in earlier proceedings.

Analysis: The goods found in the trading unit were proposed to be treated as manufactured and clandestinely removed by the manufacturing unit only on the basis that their value would push the clearances beyond the small scale exemption limit. The earlier appellate order on the same set of facts had already held that the plastic chairs and tables seized from the trading premises could not be treated as clandestinely removed goods of the manufacturer, and had consequently set aside the duty demand and upheld the assessee's eligibility to the exemption. Since the present confiscation and penalty proceedings rested on the very same factual foundation, the issue was treated as concluded.

Conclusion: The confiscation and penalties were unsustainable and were set aside.

Final Conclusion: The appeals succeeded and the appellants obtained full relief against confiscation and penalty.

Ratio Decidendi: Once an identical factual issue has attained finality in prior appellate proceedings, the same goods cannot again be treated as clandestinely removed for the purpose of confiscation and penalty.

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