Seizing of non duty paid goods

[vishal gupta]

whether goods can be seized if the consignor has not paid the central excise duty, but the consignee has received the goods in the factory after making proper payment with duty to the consignor.pls comment with case law, if any.

[DR.MARIAPPAN GOVINDARAJAN]

In my view it can be seized but the consignee is having the defence for making payment to the consignor. I will search case law in this regard and I will revert.

[KASTURI SETHI]

Duty paid goods mean duty deposited into Central Govt. . Account under proper accounting Head 0037. Consignor's invoice must duty particulars. It is a clear cut offence. Duty paid by consignee is an after thought. We take shelter of case law when there is some ambiguity. On this issue CE law is very much clear, such goods are to be seized. I also support the views of Sh.Marriapan Sir.

[Himansu Sekhar]

Whether the goods have been removed with invoices. Moreover Govt. Has vast authorities to recover the dues.

[MUKUND THAKKAR]

collecting the duty from consignor and not paying to govt. it is offence. so dept has right to take any action.

[KASTURI SETHI]

Sh. Mukund Thakkar Ji,. Yes, Sir. Righhly explained.

[Ganeshan Kalyani]

As per Rule 4(1) of Central Excise Rule, every person who produces or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty livable on such goods in the manner provided in rule 8 or under any other law, and no excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are produced or manufactured, or from a warehouse, unless otherwise provided:

The law is clear that duty is payable on removal of goods.

AI Summary

Seizure of duty-unpaid goods: payment to consignor does not discharge statutory duty payable on removal.
Goods removed without remittance of excise duty remain liable to seizure because excise duty is payable on removal and must be deposited into the Government account; payment made by a consignee to the consignor does not discharge the statutory obligation to pay duty to the revenue, though the consignee may have a factual defence for having paid the seller.