2013 (9) TMI 781

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....etitioners claim to be engaged in import and export of steel, ferro alloys, welding electrodes, agricultural equipments with spares and for their manufacturing activities, but on surprise visit the respondent no.2 found that there is manufacturing activities of production of chewing tobacco through four numbers of FFS machines. The said authorities further found that the said machines are in running condition and the petitioners did not declare those machines to the Central Excise Department meaning thereby no registration was taken. The plant and machines were seized by the respondent authorities. Subsequently, an order was passed by the respondent authorities to the concerned banks of the petitioners not to allow any operation through the....

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....n by the petitioners cannot come into aid because of the distinguishing features as in the said case the goods were confiscated and further action was required to be taken under Section 124 of the Customs Act, 1962. It is not in dispute that Section 121 of the Customs Act provides for confiscation of the sale proceeds of the excisable goods sold by a person having knowledge or reasons to believe that such goods are excisable goods. It has further come from the submission of the respondents that the goods manufactured by the petitioners attracts the fixed amount of excise duty on each machine per month and, therefore, to safeguard the interest of the revenue, the sale proceeds can be confiscated by invocation of the provisions contained in ....