RIMJHIM ISPAT LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The present Criminal Appeal is moved against concurrent findings of dismissal of discharge application by the Special Chief Judicial Magistrate at Kanpur Nagar, Uttar Pradesh (hereinafter, "Trial Court") and the High Court of Judicature at Allahabad (hereinafter, "High Court") as moved by M/s Rimjhim Ispat Limited, M/s Juhi Alloys Limited, and Shri Yogesh Aggarwal (hereinafter, "Appellants") in the criminal proceedings that were initiated against it under Sec. 9 and 9AA of the Central Excise Act, 1944 (hereinafter, "CEA 1944").

(2.) Against the Judgment dtd. 5/2/2016 passed by the High Court (hereinafter, "Impugned Judgment"), the strength of the argument for discharge application, as raised by the Appellants has primarily been the quashing of departmental proceedings initiated by the Respondent No.2 herein (hereinafter, "Respondent-Department") against the Appellant by the High Court in Writ Tax No.771 of 2015 on similar grounds, the criminal proceedings are, not sustainable against the Appellants.

(3.) The factual matrix, as selectively presented by the Appellants, reveals that on 22/11/2007, a search was conducted at the premises, offices and factories, of Appellant No.1, unearthing serious irregularities that culminated in the initiation of proceedings via two separate Show Cause Notices (hereinafter, "SCNs"). The first, dtd. 16/5/2008 (hereinafter, "First SCN"), alleged clandestine manufacture and illicit removal of excisable goods. The second, dtd. 6/3/2009 (hereinafter, "Second SCN"), attributed direct and vicarious liability to the Director(s) of Appellant No.1 (specifically, Appellant No.3) and M/s Juhi Alloys Limited, being Appellant No.2 herein, for such unlawful removal of excisable goods during the Financial Year 2006-07, along with evasion of excise duty, interest, and penal consequences.