GAJJADHAR JHANWAR Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) BOTH the appeals are being disposed of by a common order as they arise out of same impugned order of Commissioner (Appeals) vide which he has upheld the imposition of penalty of Rs. One lakh imposed on each of the appellants in terms of provisions of Rule 26 of Central Excise Rules. After hearing both the sides, I find that the appellants are Director of M/s. Banke Bihari Processors (P) Ltd. which is engaged in the process of man -made fabrics. The factory premises of M/s. Banke Bihari Processors P. Ltd. was visited by the Central Excise officers, who conducted various checks and verification. As a result, shortages in the stock of final product was detected. Further search of the factory and other premises resulted in finding of incriminating documents showing illegal clearance of their product. All these incriminating documents were seized under the cover of panchnama drawn on the spot.

(2.) ON the basis of above, proceedings were initiated against M/s. Banke Bihari Processors (P) Ltd. as also the present two appellants i.e. the Directors of M/s. Banke Bihari Processors. The same resulted in passing of the order passed by the original adjudicating authority confirming demand of Rs. 30,38,983/ - and imposing equivalent penalty on M/s. Banke Bihari Processors P. Ltd. In addition, penalty of Rs. One lakh each was imposed upon the present appellants.

(3.) WHILE dealing with the separate appeal of present appellant, Commissioner (Appeals) upheld the imposition of penalty upon them on the ground that Shri Gajjadhar Jhanwar has agreed to the contents of panchnama and further Shri Narayan Prasad Jhanwar has agreed with the statement of Shri Gajjadhar Jhanwar. He has further admitted that quantity in question was removed clandestinely without payment of duty and without issuing any notice. The entries made in incriminating documents were further agreed upon by the second Director. As such, Commissioner (Appeals) has observed that both the Directors were involved in the clandestine activities, justifying imposition of penalties upon them under Rule 26 of the Central Excise Rules.