Custom, Excise & Service Tax Tribunal
Palghar vs Shri Ramkaran R Karwa on 18 October, 2023
CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
MUMBAI
WEST ZONAL BENCH
EXCISE APPEAL NO: 86638 OF 2017
[Arising out of Order-in-Appeal No: SK/105-115/TH-II/2017 dated 31st March
2017 passed by Commissioner of Central Excise (Appeals), Mumbai-I.]
Commissioner of Central Excise
Thane-II
5th Floor, Plot No. C-24, Sector-E,
Bandra-Kurla Complex, Bandra (E), Mumbai - 400051 ... Appellant
versus
Perfect Containers Co Pvt Ltd
9, Palghar Taluka Indl. Co-op Estate
Boisar Road, Palghar, Dist. Thane ...Respondent
WITH EXCISE APPEAL NO: 86494 OF 2019 [Arising out of Order-in-Appeal No: NA/GST/A-III/MUM/345/18-19 dated 23rd January 2019 passed by Commissioner of GST & Central Excise (Appeals-III), Mumbai.] Commissioner of CGST & Central Excise Palghar 5th Floor, Plot No. C-24, Utpad Shulk Bhavan, Sector-E, Bandra-Kurla Complex, Bandra (E), Mumbai - 400051 ... Appellant versus Ramkaran R Karwa Perfect Containers Co Pvt Ltd 9, Palghar Taluka Indl. Co-op Estate Boisar Road, Palghar, Dist. Thane ...Respondent APPEARANCE:
Shri Xavier R Mascarenhas, Superintendent (AR) for the appellant Shri Prakash Shah, Advocate and Mr. Mihir Mehta, Advocate for the respondents E/86638/2017 & E/86494/2019 2 CORAM:
HON'BLE MR C J MATHEW, MEMBER (TECHNICAL) HON'BLE MR AJAY SHARMA, MEMBER (JUDICIAL) FINAL ORDER NO: A/ 87026-87027/2023 DATE OF HEARING: 20/06/2023 DATE OF DECISION: 18/10/2023 PER: C J MATHEW Two appeals of Revenue are before us in relation to proceedings initiated against M/s Perfect Containers Co Pvt Ltd and M/s Maxim Containers Co in which demand of duty of ₹ 6,53,318 and ₹ 3,13,418 as well as to dropping of further demand of ₹ 1,05,208 and ₹ 22,509 allegedly cleared by M/s Maxim Containers Co and M/s Impress Containers Co. In addition, the dropping of penalty against several individuals as well as the assessees by the order 1 of Commissioner of Central Excise (Appeals), Mumbai are also challenged by Revenue. In addition, absolute confiscation of ₹ 2,06,33,000 seized from the premises of Shri Ramkaran R Karwa and dropping of penalties arising therefrom to overturn the order of the original authority is also in appeal.
2. We have heard Learned Authorised Representative and Learned 1 [order-in-appeal no. SK/105-115/TH-II/2017 dated 31st March 2017] E/86638/2017 & E/86494/2019 3 Counsel for the respondents.
3. Substantive issue of confiscability of Indian currency seized from the residence of Shri Ramkaran R Karwa as sale proceeds of goods which are clandestinely cleared would appear to be a vague conclusion insofar as the principal purpose of recovery of duties of clandestinely produced goods. We find that the proposal for restoration of the absolute confiscation of the Indian currency, ostensibly as sale proceeds of clandestinely removed goods has, not brought on record any correlation of the value of the goods allegedly ought to have been clandestinely removed and the recovery thereafter. It would, therefore, appear that the seizure of the Indian currency followed by confiscation without application of mind or establishing that the same were proceeds of clandestinely removed goods. Accordingly, the appeal of Revenue for absolute confiscation is without merit and the same is accordingly dismissed.
4. Insofar as the other appeal is concerned, the proposal against several respondents in the proceedings is well beyond the threshold limit for continuation of the proceedings in accordance with the instruction issued by Central Board of Indirect Taxes and Customs issued under F. No. 390/Misc/116/2017-JC dated 22nd August 2019. Though the consolidated amount sought to be restored by the appeal may exceed the threshold, the privilege of a combined appeal, albeit E/86638/2017 & E/86494/2019 4 with separate respondents cannot be extended to permit Revenue to pursue an appeal beyond the threshold. Accordingly, the appeal of Revenue is dismissed on the terms of national litigation policy.
5. Both appeals are dismissed.
(Order pronounced in the open court on 18/10/2023) (AJAY SHARMA) (C J MATHEW) Member (Judicial) Member (Technical) */as