Order No. 3890 to 3933/98-WZB/C-I arising from in E/Stay-1839 to 1880/93-Bom and E/Stay 1882 to 1883/98-Bom in Appeal Nos. E/2657 to 2698/98-Bom and E/2701 to 2702/98-Bom. Case: Ramesh Kumar P. Singhvi Vs Commissioner of C. Ex. & Customs. Central Information Commission

Case NumberOrder No. 3890 to 3933/98-WZB/C-I arising from in E/Stay-1839 to 1880/93-Bom and E/Stay 1882 to 1883/98-Bom in Appeal Nos. E/2657 to 2698/98-Bom and E/2701 to 2702/98-Bom
CounselFor Appellant: Shri Willingdon Christian with Shri Mayur Shroff, Advocates and For Respondents: Shri S.V. Singh, J.D.R.
JudgesShri J.H. Joglekar, Member (T) and J.N. Srinivasa Murthy, Member (J)
IssueCentral Excise Act, 1944 - Section 35F
Judgement DateOctober 15, 1998
CourtCentral Information Commission


J.H. Joglekar, Member (T), (West Zonal Bench At Mumbai)

  1. These 44 stay applications arise out of the same impugned order and therefore it is being dealt with in this common order.

  2. M/s. Krishna Dyeing & Finishing Works processed grey fabrics received from merchants. In a visit to their factory on 17/03/1997 the officers of Central Excise detected some finished stock which was not recorded in the statutory registers. They also seized two note books in which details of cloth processed by the Mills were recorded. On comparing the details given in these two note books as also the details given in 9 job lot cards with the statutory Central Excise registers including from IV register, the Officers found non- recording of considerable quantity of grey fabrics received for processing and resultant less payment of duty. The statements were recorded of the partner Shri J.B. Lakhadia, the Printing Master Shri Modi, Assistant to Printing Master Shri Ingle, Excise Clerk Shri Jahav as also those of the merchant manufacturers who had sent the grey fabrics for processing. On the basis of these investigations the Officers calculated duty not paid by the Mills at Rs. 40,26,799/-. During the course of investigations the Mill deposited the entire amount of duty so calculated.

  3. Thereafter show-cause notice was dated 15-9-1997 was issued seeking recovery of the duty short levied, seeking confiscation of the unaccounted goods and alleging liability to penalty on account of the assessee company, Shri Lakhadia and the 42 dealers. After hearing the concerned persons the Commissioner passed the impugned order confirming duty, confiscating the excess goods as well as the plant, machinery and factory building, etc., but permitting the redemption on payment of appropriate fine. He imposed penalty on the assessee firms equal to the amount of duty evaded in terms of Section 11AC of the Central Excises and Salt Act, 1944 read with Rule 173Q of the Central Excise Rules, 1944. Under 209A of the said Rules he imposed a penalty of Rs. 1 lakh on the partner Shri J.B. Lakhadia as also varying penalties on the 42 merchant manufacturers. On the manufactures the quantum of penalty was equal to the duty evaded on the proportionate quantum of fabrics. These various applications seek waiver of pre-deposit of penalty and fine, as also stay of recovery thereof.

  4. Shri Willingdon Christian, the learned Advocate on behalf of the applicants clarified that since the...

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