M/s. Genus Electrotech Ltd. Versus The Commissioner of GST & CE, Pondycherry
Central Excise
2019 (2) TMI 847 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 25-1-2019
E/41889/2018 – 40162/2019
Central Excise
Shri P. Dinesha, Member (Judicial)
For the Appellant : Shri J. Shankarraman, Advocate
For the Respondent : Shri L. Nandakumar, AC (AR)
ORDER
The appellant is a manufacturer of 'Electric Table Fans and Domestic Electric Food Mixer' for exclusive supply to the Tamilnadu Government, under Rate Contract. Show Cause Notice (SCN) dated 29.02.2016 reveals that the appellant had taken on rent a godown located at No. 107/3A1C, M.N. Kuppam, Navammal Kappir Village, Kandamangalam, Villupuram, Tamilnadu-605102 where, the
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ce constraint; that the seized goods were not marketable otherwise since the same was manufactured for Tamilnadu Government to be distributed freely as per a scheme of the Government; that the removal of the above goods against the returnable delivery challans was undertaken to facilitate further production at its registered premises, that the contract was for bulk quantity but the supply was effected as per the terms of contract in retail form at each taluk office, etc., but accepted to clear the Central Excise Duty of Rs. 13,83,970/- demanded and also agreed to offer a bank guarantee of Rs. 28,00,000/-.
2. After considering the reply, the adjudicating authority vide Order-in-Original dated 31.03.2017 ordered confiscation of the impugned
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ty of redemption fine with equal penalty is justified on the facts and circumstances involved?
4.2 Undisputedly the electric table fans manufactured by the appellant are specifically manufactured for the Government of Tamilnadu as per the Government Scheme and otherwise, the impugned goods have no marketability and cannot be sold in the open market. The manufactured fans could only be cleared against the orders by Tamilnadu State Civil Supplies Corporation for free distribution under the State Government's scheme and the said fans carried a specific logo. In the light of the above discussion, I find merit in the plea of the assessee that removal from the factory to its godown is not an act of fraud, collusion, suppression etc. to evade pay
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