LOKESH PATHAK Vs. COMMISSIONER CENTRAL EXCISE

JUDGEMENT

(1.) THE petitioner Lokesh Pathak seeks mandamus for release of Rs.63,82,000/- which were seized on 2nd November, 2004, during the search proceedings under the Central Excise Act, 1944 read with Sections 110 and 121 of the Customs Act, 1962.

(2.) THE petitioner is Managing Director of Art-N-Glass Pvt. Ltd. As per the counter affidavit the allegations are that the said company was indulging in the evasion of central excise duty by way of under valuation and suppression of their actual production and removal of manufactured goods clandestinely without payment of appropriate central excise duty. It is also stated that cash of Rs.66,05,000/- was recovered from the residence of the petitioner and on enquiry at the time of search, it was stated that the cash was related to the factory account and was kept in the house for safety reasons. It is further alleged that the accounts of two sister concerns M/s Designer Glass Works and M/s Nangloi Glass & Plywood were also found maintained at the same premises. It is averted in the counter affidavit that the statement of the petitioner was recorded under Section 14 of the Central Excise Act, 1944 on 2nd November, 2004 and the petitioner was not able to explain the source of cash recovered from his residence. Accordingly, it is submitted that the seizure is justified. 2. THE petitioner on the other hand contends the cash recovered pertains to transaction relating to sale of an immovable property with a third person Sanjay Singhal. Reliance is placed on purported documents. THEse all are disputed questions of fact which have to be gone into and examined during the course of the adjudication proceedings under the Central Excise Act, 1944. Various aspects including statements recorded, books of accounts and other material available is required to be examined and gone into. Against the assessment order, M/s Art-N-Glass India Pvt. Ltd. has filed an appeal before Custom, Excise & Service Tax Appellate Tribunal, New Delhi. In the said appeal, the following order dated 1st August, 2007 was passed on the stay application by the aforesaid Tribunal: