Case Law Details
Pareshbhai Ramanbhai Amin Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
CESTAT Ahmedabad held that fact of clandestine manufacture and clearance thereof is established, however, since there is no clinching tangible evidence or any corroborative evidence to establish the appellant as a manufacturer, liability of duty, penalty cannot be fastened.
Facts- On a specific intelligence that illicit manufacturing and clearance of Pan masala containing tobacco falling under tariff item 24039990, commonly known as “Gutkha”, attracting levy of Central Excise duty u/s. 3A of Central Excise Act, 1944, was being carried out from premises of M/s Laxmi Tobacco Company.
Officers noticed that in Godown No.3 of said premises of M/s Laxmi Tobacco Co., two Pouch Packing Machines (Form, Fill and Seal – FFS) were found installed and in working condition manufacturing notified goods i.e. “Pan Masala Containing Tobacco” falling under tariff 2403 99 90, known as “Gutkha”. It was also noticed that duplicates of leading brand of “Vimal”, “Rajkolapuri”, “Gomti” were being manufactured there. During said search, it was also noticed that the notified goods were being manufactured without Central Excise Registration and no duty was paid under Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008. Therefore, the said 2 Pouch Packing Machines, Raw Materials and Packing Materials found were placed under the seizure. Machines and goods valued at Rs. 15,53,700/- were seized under Panchnama dated 19.09.2013 drawn at premises of M/s Laxmi Tobacco Company, under reasonable belief that the same were of offending nature and goods liable to its confiscation. After completing Investigation, it is the case of the Revenue that Shri Pareshbhai R. Amin and Shri Ashwin Purshottambhai Patel had created partnership for illicit manufacture & clearance of Pan Masala with Tobacco, without payment of Central Excise duty and without following procedures prescribed by the Rules.
Accordingly, SCN dated 14.03.2014 was issued for recovery of the Central Excise duty totally of Rs 4.32 Crores along with interest. Adjudicating authority confirmed the demand. Being aggrieved, the present appeal is filed.
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