2001 (7) TMI 619 - AT - Central Excise

Tribunal adjusts fines on appeal due to lack of proof of duty payment

The Tribunal upheld the duty demand but reduced the redemption fine and penalties to Rs. 3,000 each due to the appellant's failure to prove duty payment ... Confiscation and penalty Issues:Violation of excise laws - Seizure of unaccounted tobacco, duty evasion, non-maintenance of statutory records, unauthorized storage of excisable goods. Appeal against confiscation, duty demand, and penalties.Analysis:1. Violation of Excise Laws:The Central Excise Officers seized unaccounted tobacco from the premises of the appellant, which was not entered in statutory records. Additionally, excisable goods were found in a room adjacent to the factory premises, not approved by the department, indicating possible duty evasion. The appellant failed to maintain statutory records since 31-3-1997, a crucial requirement under the law for production and clearances.2. Confiscation and Penalties:The Deputy Commissioner confiscated the seized goods with an option for redemption on payment of a fine, demanded duty on certain tobacco quantities, and imposed penalties under relevant provisions. The Commissioner (Appeals) upheld the adjudication order, leading to the appeal. The appellant argued for the benefit of doubt due to unavoidable circumstances, citing cases to support their claims.3. Appellant's Arguments:The appellant contended that due to the proprietor's severe accident, goods could not be properly accounted for, and excisable goods were stored due to worker ignorance. They claimed that the goods found were duty paid, emphasizing lack of mala fide intent and reliance on precedents for benefit of doubt. The appellant shifted the burden of proof to the Department, asserting that clandestine removal was not proven.4. Department's Response:The learned JDR for the respondent highlighted the absence of statutory record maintenance, unauthorized storage of excisable goods, and lack of evidence supporting the claim of duty-paid goods seized from shop and godown premises. The Department maintained that the impugned order should be upheld based on these grounds.5. Judgment:The Tribunal upheld the duty demand confirmed by the Commissioner (Appeals) due to the appellant's failure to prove duty payment for seized goods. However, considering the circumstances, the redemption fine and penalties were reduced to Rs. 3,000 each. The appeal was partly allowed, acknowledging the facts while adjusting the financial liabilities imposed.