Customs, Excise and Gold Tribunal - Mumbai
Suman Silk Mills Pvt. Ltd. vs Commissioner Of Central Excise And ... on 12 October, 2001
JUDGMENT
Jyoti Balasundaram, Member (Judicial)
1. The above appeal arises out of the order of the Collector of Central Excise who has interalia confiscated 62 pieces of processed man made fabrics measuring 6241.50 L.Mtrs. with option to redeem the same on payment of fine of Rs. 25,000/- along with proper duty and has confirmed duty demand of Rs. 9345.21 on illicit clearance of 60 pieces of processed man made fabrics measuring 5894.25 L.Mtrs. In addition, he has imposed penalty of Rs. 50,000/- on the appellants herein.
2. None appeared for the appellants in spite of notice and hence heard the departmental representative and perused the records.
3. I find that the confiscation is the result of the finding that the fabrics removed illicitly without payment of duty and delivered to the concerned merchant manufactures. The finding is based upon the statement of Shri Champalal Chopra, Director of M/s. Suman Silk Mills and statements of concerned merchant manufacturers who have stated that they have sent grey man made fabrics without cover of grey challans to M/s. Suman Silk Mills in replacement of the processed fabrics in substitution of earlier fabrics illicitly cleared by the mills. The seized 62 pieces were also found to bear the same lot number allotted tot he earlier fabrics and were not accounted for in the statutory Form IV/Lot register. Since the evidence on record clearly proves out that the 62 pieces were substituted fabrics, the order of confiscation and payment of fine in lieu thereof is clearly sustainable. Hence, I uphold the same. The duty demand on 60 pieces of processed man made fabrics is also sustainable since all merchant manufactures have categorically admitted that they received the said fabrics illicitly cleared by the mills without payment of duty. Therefore, the charge regarding the illicit removal of processed man made fabrics has been established and I uphold the duty demand on this quantity.
4. Penalty is also warranted. However, having regard to the totality of the facts and circumstances including the duty amount involved, I reduce the penalty to Rs. 25,000/- (Rupees twenty five thousand only).
5. The appeal is thus disposed of accordingly.
(Dictated in Court)