Case Law Details
Velji P & Sons Vs C.C.E. & S.T. (CESTAT Ahmedabad)
The case of the department is that the appellant M/s. Rawmin Mining and Industries Pvt. Ltd. is 100% export oriented unit has cleared 444903.645 MTs of their final product namely Beneficiated Bauxite and stored at the plot allotted to their custom house agent and shipping agent M/s. Velji P & Sons near Porbandar Port. In respect of such clearance no document such as export document, excise invoice or ARE- 1 was issued therefore the department contended that the excisable goods were cleared without payment of duty and without issuing any documents which is liable to confiscation and also liable to excise duty. Accordingly, the Adjudicating Authority confiscated such goods and demanded excise duty and imposed penalty on all the appellants. The Commissioner (Appeals), in appeals filed before him upheld Order-In-Original except reducing the penalty in respect of appellant Shri Bhavin Hariharbhai Thanki and M/s. Velji P & Sons. Being aggrieved by the said Order-In-Appeal the appellant filed the present appeal.
CESTAT find that there is no dispute in the facts of the case that M/s. Rawmin Mining and Industries Pvt. Ltd have cleared their excisable goods outside the factory without payment of duty and without preparing any documents. Therefore, there is clear violation of the Central Excise Rules and procedure. The appellants’ main defence is that the goods were meant for export and subsequently the same have been exported, therefore, no mala fide intention with intent to evade payment of duty. Even if this fact is considered but the violation of the provision is clearly exists that though excisable goods from the factory cannot be cleared without payment of duty and without issuing the invoices , ARE-1 if it is meant for export. Therefore, the goods were rightly confiscated. However, the appellants’ claim is that the goods which were confiscated have been finally exported, on such goods excise duty is not chargeable but in this case the subsequent event of export of goods has not been considered. Accordingly in my considered view the matters needs to be re-adjudicated after ascertaining facts about the disposal of the goods whether the same were cleared in DTA or for export.
Hence the impugned order is set aside, the matters are remanded to the Adjudicating Authority for passing a fresh order
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
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