CESTAT upholds Redemption Fine imposed for Confiscation of Excess quantity of master batch of Polypropylene Woven Sacks on Ground of absence of Satisfactory Explanation [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the redemption fine imposed for the confiscation of excess quantities of a master batch of the polypropylene woven sacks goods on the ground of the absence of satisfactory explanation on the part of the assessee. 

Pratap Polysacks Ltd, the appellant assessee was engaged in the manufacture of HEPE/PP Sacks, Woven Fabric (both laminated and un-laminated) woven sacks (both laminated and un-laminated) liner and cut pieces and the assessee appealed against the order passed by the adjudicating authority for confirming the demand of excise duty and imposition of redemption fine for confiscation of goods along with the interest. 

N.K.Chowdhury, the counsel for the assessee contended that the assessee had not taken CENVAT credit on the excess quantity of Master Batch found and the plausible explanation for the excess was also given to the effect that difference might have occurred due to excess consumption of Master Batch recorded by the supervisor over a long period. 

Further submitted that since no CENVAT credit was taken on such excess quantity of Master Batch, the confiscation of the same does not arise and the redemption fine imposed for the confiscation of goods was not as per the law and liable to be deleted. 

S.Mukhopadhyay, the counsel for the department relied on the decisions made by the lower authorities and contended that the excess consumption of the master batch was received by the assessee and the redemption fine imposed for the confiscation of the goods was as per the law and liable to be sustained. 

The Bench observed that there was no allegation in the Notice that they have taken any excess credit on account of this excess quantity of master batch found and there was no finding in the impugned order also that the excess quantity had been kept for manufacturing and clearance of the goods clandestinely. 

The two-member bench comprising Ashok Jindal (Judicial) and K.Anpazhakan (Technical) held that the explanation offered by the assessee was also not satisfactory and upheld the confiscation of the excess quantity of master batch and the redemption fine imposed in the impugned order. 

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