Sandeep Matta Vs Commissioner of CGST & Central Excise Indore (CESTAT Delhi)
Confiscation upheld as Pan Masala and Gutkha clandestinely manufactured and cleared under different brands without authorization
CESTAT Delh held that confiscation of goods justified as Pan Masala and Gutkha were clandestinely manufactured and cleared under different brands without authorization. Accordingly, order upheld and appeals dismissed.
Facts- The appellants are engaged in manufacture of Pan Masala/Gutkha/Chewing Tobacco of various popular brands. Intelligence was developed by the Officers of Central Excise, Indore about Shri Gurnomal Matta along with his sons namely Shri Sanjay Matta and Shri Sandeep Matta to have been clearing the manufactured Pan Masala/Gutkha clandestinely without obtaining central excise registration and without payment of central excuse duty. The said manufactured product was transferred and cleared clandestinely from appellants’ godown and their shop. Based on the said intelligence that the several premises of three of the appellants were searched simultaneously on 13.07.2015. Incriminating documents were recovered.
Accordingly, the Show Cause Notice was served upon the appellants proposing that the raw material/packing material/finished goods/machines etc. valued at Rs.25,85,090/- seized from the various premises of three of the appellants including the packing material, the value of which could not be ascertained were proposed to be confiscated under Rule 25 of the Central Excise Act, 1944. The Indian currency in cash valued at Rs.6,76,000/- was also proposed to be confiscated u/s. 121 of the Customs Act, 1962. Penalty was also proposed to be imposed under the provisions of Rule 25 of the Central Excise Rules, 2002. The said proposal has been confirmed vide the Order-in-Original. Being aggrieved of the said order, the present appeals were filed on 16.09.2019.
