SANTOSH KUMAR GARG Vs. UNION OF INDIA (UOI) THROUGH CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, DEPARTMENT OF REVENUE, MINISTRY OF FINANCE AND THE COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THESE three writ petitions under Article 226 of the Constitution of India have been filed challenging the legality of an order of the Customs Excise and Service Tax Appeal Tribunal dated 12.4.2006 whereby the Tribunal has directed pre deposit of a sum of rupees two crores by each one of the petitioners as a precondition for hearing the appeals against the order of Commissioner, Central Excise dated 28th October, 2005. Vide this order the Commissioner had imposed a penalty of Rs. 21 crores on petitioner Devi Das Garg, Rs. 25 crores on petitioner Rakesh Kumar Garg and Rs. 21 crores on petitioner Santosh Kumar Garg under Rules 209 and 209A of Central Excise Rules, 1994 and Rules 25 and 26 Central Excise(2) Rules, 2001 and Central Excise Rules 2002. Apart from imposing penalties on these petitioners by this order, the Commissioner had also raised a demand of Central Excise Duty amounting to Rs.33, 20,03,239/ - against M/s Amar Jyoti Packers and imposed an equivalent amount of penalty under Section 11 AC on M/s Amar Jyoti Packers.

(2.) THE brief facts leading to imposition of penalties and raising of demand of excise duty are as under.

(3.) ON receiving an information of large scale evasion of excise duty, a raid was conducted by excise department on 20.10.2000 at following premises viz