INDIAN METALS AND FERRO ALLOYS Vs. COLLECTOR OF CUS AND C EX
LAWS(CE)-1991-3-2
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on March 26,1991

Appellant
VERSUS
Respondents

JUDGEMENT

T.P. Nambiar, Member (J) - (1.) THE above captioned appeals bearing No. E-55/87-Cal. and E-56/87-Cal. are filed by the appellants against the common order passed by the Collector of Central Excise, Bhubaneswar in adjudication Order No. V(25) 15-6/85/Collr-24/86, dated 28-11-1986. In terms of that order, he imposed a penalty of Rs. 1,00,000/- on M/s. Indian Metals & Ferro Alloys Ltd. under Rule 173Q of the Central Excise Rules, 1944 for having contravened Rule 52A, read with Rule 173G. He also imposed a penalty of Rs. 1,000/- on IMFA under Rule 210 of the Central Excise Rules, 1944, for contravention of Rule 193 and 51ibid. He also confiscated seized charge chrome under Rule 173-Q and ordered redemption of the seized and confiscated goods on payment of fine of Rs. 1 lakh. He imposed a fine of Rs. 1,000/- on the appellant M/s. Ajanta Transport Co., Rayagada under Rule 52A of the Central Excise Rules 1944 for contravention of Rule 52A. He further imposed a penalty of Rs. 1,000/- on M/s. Ajanta Transport Company, Rayagada, under Rule 210 of the Central Excise Rules, 1944, for contravention of Rule 193 and the Truck No. ORU 2064 which was concerned in the carrying of contraband goods was confiscated and it was ordered that the same shall stand redeemed on payment of redemption fine of Rs. 10,000/-.
(2.) Appeal Nos. E-57/87-Cal. and E-58/87-Cal. are directed by the above cap-tioned appellants against the order passed by the Collector of Central Excise and Customs, Bhubaneswar in Order No. V(25)15-7/85/Collr-25/86, dt. 28-11-1986. In terms of that order, the learned Collector imposed a penalty of Rs. 75,000/- on M/s. Indian Metals and Ferro Alloys Ltd. under Rule 173Q of the Central Excise Rules, 1944 for contravention of Rule 52A, read with Rule 173G. He also imposed a penalty of Rs. 1,000/-on M/s. IMFA, under Rule 210 of the Central Excise Rules, 1944 for contravention of Rules 51 and 193. The seized charge chrome weighing 72 M.T. was also confiscated under Rule 173Q for contravention of Rule 52A, read with Rule 173G, and it was ordered that the same shall be redeemed on payment of a fine of Rs. 75,000/-. He imposed a penalty of Rs. 1,000/- on M/s. Orissa Transport Service under Rule 52A of the Central Excise Rules. He also imposed a penalty of Rs. 1,000/- on M/s. Orissa Transport Service under Rule 210 of the Central Excise Rules for contravention of Rule 193 of the Central Excise Rules, 1944. In all these appeals the seizure of the charge chrome was made by the officers on 15-3-1985 in the afternoon. They were seized from the premises of the officers colony of IMFA. The points involved in all the four appeals are also similar, and in view of the above facts we propose to dispose of these four appeals by this common order.
(3.) THE facts involved in the appeals E-55/87-Cal and E-56/87-Cal are that, on an information that huge quantity of charge chrome had been surreptitiously removed from the manufacturing premises of IMFA, the officers of the Central Excise, Rayagada, visited the spot on 15-3-1985 and found that some bags of charge chrome have been stored there. THEy also found one truck ORU 2064 unloading some materials in the gunny bags. On counting they found that there were 3,360 bags of charge chrome. One Shri P.K. Saha Supervisor of IMFA was supervising the unloading. One Shri A. Mishra of the appellant Company, M/s. Ajanta Transport Company also came there and stated that they were the transport contractor of M/s. Jindal Strips Ltd, Delhi Road, Hisar. Since they could not produce any valid documents, the same was detained by the officers. It is the case of the Department that further investigation revealed that M/s. Indian Metals and Ferro Alloys Ltd. (IMFA) removed without payment of duty the above said charge chrome in 3360 bags weighing 163 M.T. It was also the case of the Department that they cunningly tried to take shelter of the Chapter X procedure by issuing some GP. 2s and AR 3s showing the subject goods to be consigned to one M/s. Jindal Strips Ltd., Delhi Road, Hisar. But the case of the Department is that actually the subject goods were not intended to be consigned to Hisar, but intended to be stored somewhere for subsequent unauthorized removal at a convenient time. It was also the case of the Department that, even though the GP 2s showed that the trucks were to carry the goods at Hisar, they were unloaded in the premises of the officers' colony. THErefore, they seized the goods and issued a show cause notice to both the M/s. IMFA Ltd and M/s. Ajanta Transport Co, to show cause as to why the goods should not be confiscated under Rules 52A, 173Q and 210 read with Rule 51 and Rule 193 of the Central Excise Rules 1944. A show cause notice was also issued to M/s. Ajanta Transport Co, as to why the penalty should not be imposed on them under Rule 210 of the Central Excise Rules for having contravened Rule 51 and Rule 193 ibid. THEy were also asked to show cause as to why the lorry should not be confiscated. THEy filed the replies and after adjudication the impugned order was passed.;


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