Clandestine removal of gutkha pan masala upheld, with duty demand and penalty sustained on supporting statements and records.

Clandestine removal of gutkha pan masala was sustained where the intercepted consignment was admittedly duty unpaid and the departmental record included statements from the purchaser, transport agent, manager and others supporting removal without duty payment or excise invoice. The appellant failed to produce evidence of duty payment for earlier consignments and did not dislodge the factual findings of the lower authorities. On these facts, the demand of duty and the accompanying penalty were upheld as justified.

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Issues: Whether the demand of duty and penalty were sustainable on the allegation of clandestine removal of Gutkha Pan Masala.

Analysis: The intercepted consignment was admittedly duty unpaid, and the departmental record included statements of the purchaser, transport agent, manager and other concerned persons supporting removal without payment of duty or excise invoice. The appellant failed to produce evidence showing duty payment on the earlier consignments and did not dislodge the factual findings recorded by the lower authorities. On these facts, the finding of clandestine clearance was accepted and the impugned demand and penal consequence were held to be justified.

Conclusion: The allegation of clandestine removal was sustained and the duty demand and penalty were upheld against the appellant.

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