CHANDULAL GORDHANDAS PATEL Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This is an appeal by special leave from the judgment dated 7/8 March. 1968 of the High Court of Gujarat convicting the appellant under Section 105A of the Penal Code, 1860 and sentencing him to rigorous imprisonment for one year and imposing a fine of Rs. 1000/- and in default of payment of fine a further rigorous imprisonment for 8 months.

(2.) The appellant and two other accused were owners of Mahendra Silk Mills (hereinafter referred to as the Mills) a unit of Mahendra Silk Mills Private Ltd., at Ahmedabad. All the three accused were brothers. They were charged under Section 165A of the Penal Code, 1860 and in the alternative under Section 165A read with Section 34 of the Penal Code, 1860 on the allegation that on or about 17 December, 1964 when the Central Excise Inspector Aillawadi had shown his intention to take legal steps while investigating the act of evasion of excise duty in respect of certain silk cases, all the three accused in order to prevent him from doing so had offered a sum of Rs. 700/- by way of, bribe. The subordinate Judge, Ahmedabad convicted the appellant and the second accused Jayantilal Gordhandas Patel and acquitted the third accused Mahendra Gordhandas Patel. The High Court on appeal acquitted the second accused.

(3.) The prosecution case in short was as follows. According to the arrangement made by the Central excise Department for collection of excise duty on excisable goods manufactured by mills, an inspector was posted at every mill, One Gokani was the Excise Inspector in charge of the mills, a unit of the Mahendra Silk Mills Private Limited. The goods manufactured in the mills remained in the mill premises which were known as the bonded godown. Only those goods on which excise duty had been paid were permitted to be removed from the bonded godown and could be brought to the duty paid godown, Excise duty wan paid either in cash or by operating a personal ledger account. The mills adopted the personal ledger account. Under that system a minimum balance was to be maintained. Excise duty payable on the goods would be permitted to be removed to the duty paid godown by debiting the proper entries in the personal ledger account. The mills manufactured cotton fabrics as well as art silk fabrics. Removal of excisable goods supervised by the Excise Officer posted at the mills. Whenever goods were picked, packing slips were prepared in triplicate. One of which remained in the mills, the other went to the Excise Inspector and the third slip used to remain in the bale in case of cotton fabrics and in the wooden case in the case of art silk fabrics. The Excise Inspector used to carry out test checking upto about 10% of the total number of packing slips. After carrying out the said test check, he would grant packing permission. After completion of packing each case of goods would be numbered according to the serial number of the mills and there would also be an entry in a register known as "E.B. 4 Register" maintained by the mills. When the goods were to be removed from the mill premises, viz., from the bonded godown, the mills would submit an application in the form known as "A.R.I." and at that moment duty on the goods would be assessable and payable as assessed by the Excise Inspector. He would permit removal after making a debit entry against the personal ledger account of the mills. After duty was paid by debit entry the excise inspector would issue a gate pass in triplicate for the goods. Passes would be prepared by the mills and would be countersigned by the Inspector. On removal of the goods to the duty paid godown, the mills would keep the goods in the duty paid godown or take them outside.