GOUTAM PAL Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner has approached this Court with this petition under Article 226 of the Constitution of India to challenge the decisions of the CESTAT dated 11 -10 -2007 and 4 -1 -2008 so also 5 - 3 -2008. The petitioner also prays for quashing and setting aside the order in original passed by Commissioner, Central Excise, Ahmedabad dated 30 -5 -2007.

(2.) BY the order in original, the petitioner was imposed with a penalty in exercise of powers under Section 11AC of the Central Excise Act, 1944 read with Rule 26 of the Central Excise Rules, 2002 and Rule 15 of the Cenvat Credit Rules, 2004 amounting to Rs. 1,86,15,263/ - being the amount equivalent to the credit of Rs. 1,84,57,043/ - under Cenvat Credit availed of, besides education cess of Rs. 1,58,220/ -.

(3.) BRIEF fact of the case against the petitioner was that he got himself registered as a Manufacturer under the Central Excise Act read with Rule 9 of Central Excise Rules. He, instead of manufacturing the goods, purchased the goods from the open market and supplied it to various purchasers as if they were manufactured by him. The goods were supplied under various invoices which were all fake and which showed the quantum of excise duty leviable on goods. On the basis of those fake bills, Cenvat Credit was availed of. The whole racket was busted and inquiry was made. The petitioner has admitted these aspects which have remained unretracted, unwithdrawn and undisputed uptill now. The order in original, therefore, came to be passed by the Commissioner of Central Excise, Ahmedabad on 30 -5 -2007. The order runs into several pages and elaborately deals with every aspect of the case.