2018 (2) TMI 461 - AT - Central Excise

Tribunal upholds duty demands for clandestine removal, interest, penalties

M/s Premium Polyalloys Pvt. Ltd., Shri Bhupendra Kumar Humad Versus CCE & ST - Daman

M/s Premium Polyalloys Pvt. Ltd., Shri Bhupendra Kumar Humad Versus CCE & ST - Daman - TMI Issues:Appeal against confirmed demand of clandestine removal, interest, and penalties.Analysis:The case involved the appellants appealing against confirmed orders demanding duty for clandestine removal, along with interest and penalties. The search conducted revealed shortages of goods and loose slips, leading to allegations of clandestine activities. Show cause notices were issued based on these findings, resulting in confirmed duty demands, interest, and penalties. The appellants contested the demands, arguing that no investigation was conducted on the buyers of the goods allegedly purchased clandestinely. They also sought a reduction in penalties, citing partial payment already made. On the other hand, the Revenue argued that the loose slips indicated clandestine removal, justifying the confirmed duty, interest, and penalties. The Tribunal found that the loose slips provided sufficient evidence of clandestine activities, negating the need to verify the buyers' details. The duty payment made on the same date as the shortage was found rendered the interest demand unsustainable, following a precedent set in a previous case. The penalties imposed were also reviewed, with the main appellant's penalty reduced to 25% of the duty paid and the director's penalty reduced from Rs. 5,00,000 to Rs. 1,00,000 due to excessive comparison with the duty amount. Ultimately, the appeals were disposed of based on these considerations.