DINESH AGARWAL AND SHARAD AGARWAL Vs. CCE

JUDGEMENT

(1.) THESE two appeals are directed against the order in appeal dated 23.3.2004 which upheld the penalties imposed on the current appellants by the adjudicating authority.

(2.) THE relevant facts that arise for consideration are that the appellants are directors of the company M/s Classic Cement Pvt. Ltd. The said company was investigated for the clandestine removal of goods and for confiscation of the excess found goods in the factory premises during the time of inspection. A common show cause notice was issued to the company as well as to the current appellant for demand of the duty, confiscation of the seized goods and for imposition of penalties. Before the adjudication could take place, the main noticee i.e. the company, went for settlement of the dispute under the Kar Vivad Samadhan Scheme, as regards the liability on the company. The designated authority accepted the said application for KVSS and certificate under form 3 was issued to the main noticee to the effect that case is settled under KVSS. Subsequently, the adjudicating authority, sought to decide the confiscation of the seized goods and imposition of penalty. The adjudicating authority confiscated the seized goods and gave an option of redeeming the same on payment of redemption fine and also imposed penalties on the company as well as the current appellant before me. On an appeal, the learned Commissioner (Appeals) has set aside the confiscation and the penalties imposed on the company but upheld the penalties imposed on the current appellants.

(3.) THE learned authorized representative appearing for appellants submits that once the main noticee is absolved of all the allegations in the same show cause notice under the KVSS, the current appellants should also get benefit of KVSS. He relies upon the Division Bench decision of the Tribunal in the case of Paradeep v. CCE Bangalaore 2004 (148) ELT 599 TRI -Bang. He also relies upon the judgment of the Hon'ble High Court of Allahabad in the case of Wilson Diesel v. Union of India 2005 (195) ELT 350 All.