SANJAY V. MODI AND AJANTA Vs. CCE

JUDGEMENT

(1.) These three appeals have arisen out of a common Order -in -Original No. 30/94 dated 28.6.94 passed by the Collector, Central Excise. Two appeals have been filed by M/s. Ajanta Synthetics and their Director Shri Sanjay V. Modi against confirmation of demand of Central Excise duty and Penalty. The third appeal has been filed by the Revenue against dropping of some demand of duty and imposing penalty not commensurate with the gravity of the offence.

(2.) Briefly stated the facts are that on the basis of intelligence to the effect that M/s. Ajanta Synthetics were indulging in evasion of duty on processed man made fabrics by resorting to suppression of production, mis -declaration and clandestine removal of excisable goods, the Central Excise Officers searched their premises on 29.1.1988 and seized unaccounted stock of processed and finished man made fabrics valued at Rs. 2,17,908. They also seized packed fabrics valued at Rs. 1,41,173 lying in the godown of M/s. Prabhat Textile. The Collector, under the impugned Order, has confirmed the demand of duty, amounting to Rs. 37,32,052 as against Rs. 1,07,34,391 demanded in the Show Cause Notice dated 24.5.1989; confiscated the seized goods and imposed penalty of Rs. 5 lakhs on the Company and Rs. 1 lakh on the Director.

(3.) Shri L.P. Asthana, learned Advocate, mentioned that the Collector has confirmed part of the demand mentioned in Annexures D -I, D -II, D -VI and entire demand mentioned in D -VII and has set aside the remaining demands in Annexures D -I, D -II, D -III, D -IV, D -V and D -VIII; that no appeal has been filed by the Revenue against setting aside the demand in Annexure D -V and D -VIII; that the appeals have been filed against the demand of duty/setting aside the demand as under: