MANOJ KUMAR ARORA Vs. UNION OF INDIA

JUDGEMENT

(1.) The instant bail application has been filed on behalf of the applicant seeking bail in Case Crime No. 700/9 of 2017, under Sections 9/9AA Central Excise Act, Central Excise, Central Preventive NOIDA pending in the court of Special Chief Judicial Magistrate, Meerut.

(2.) Heard Learned Sri Viresh Mishra, Learned Senior Advocate assisted by Sri Abdul Samad Learned Counsel for the applicant, Sri Praveen Kumar Learned Counsel for the Union of India (opposite party No. 2) and have been taken through the material placed on record.

(3.) The emanation of facts from the prosecution giving rise to the present case in a short conspectus is that the applicant has been running a factory for the manufacture of Poorvi Pan Masala and Scented Zarda Tobacco, situated in plot No. 59, Udgog Kendra-II Ecotech-III, Greater NOIDA (U.P.) in the name and Style of M/s. Poorva Pan Masala Private Limited. On Surveillance of plot No. 59 Udyog Kendra-II Ecotech-III, Greater NOIDA, it demonstrated that illegal manufacturing of Panmasala at plot No. 48 Phase-I Ecotech-III, Greater NOIDA was being carried out without obtaining Central Excise Registration and clearing the excise duty. Both the plots were raided on 15-3-2017. The officers of Anti-Evation Branch of Central Excise Commissionerate, NOIDA-II conducted extensive surveillance of both the premises between 3-3-2017 to 15-3-2017 with the permission of the competent authority. When the team of Central Excise Officers searched the premises of plot No. 48 Phase-I, Habibpur on 15-3-2017, the gate of the premises was found locked and on being interrogated by the officers from the adjacent units, it emanated that some manufacturing activities of Pan Masala and Tobacco products were carrying on in the said premises. Search warrant was issued by the Additional Commissioner Central Excise Commissionerate, NOIDA-II for search of the said premises in presence of two independent witnesses. After breaking open the lock of the said premises, six Pan Masala packing machines in unsealed condition, two other packing machine, one big sealing machine, one big weighing scale, one small weighing scale, a mixture tub and stock of raw materials were found inside the premises. Finished Pan Masala in the name and style of Poorvai in different packing of 05 grams MRP Rs. 4.00 per pouch, 2 grams MRP Rs. 2.00 per pouch and 100 grams containers MRP 170.00 as well as Zarda scented tobacco of P-1 branch in packing of 0.5 grams MRP Rs. 1/- per pouch and Zandra scented tobacco of Poorvai Zafrani Zarda container packing of 50 grams MRP Rs. 150.00 per container were found in the premises. The stock of raw material i.e. Betel nut, Cardamum (Green Ilaichi) Black pepper, Clove, Catchu Powder, Lime Powder, Packing Material in the form of rolls, plastic pouches, HDPE bags tin containers etc. were lying in the premises. On search of premises of plot No. 48, the name of manufacturer on the packing of finished goods i.e. Pan Masala and scented Zarda tobacco were found mentioned as M/s. Poorvai Pan Masala Private Ltd. During the course of search Idris Ahmad, the owner of the premises of plot No. 48 Phase-I Ecotech-III, Habibpur, Greater NOIDA was contacted telephonically. The owner of the premises of plot No. 48 informed that he had given the said premises on rent to Manoj Arora but he was not aware about the whereabouts of Manoj Arora. Idrish Ahmad, the owner of the premises of plot No. 48 Phase-I Ecotech-III, Habibpur, Greater NOIDA contacted Manoj Arora and called him at M/s. Poorvai Pan Masala Pvt. Ltd. The officers seized all finished goods i.e. raw material, machinery, packing material kept inside the premises. Under Rules 24 of the Central Excise Rules, 2002, the seized articles were liable for confiscation. Thus those articles were seized and were handed over in the Supurdgi of Idrish Ahmad, the owner of the premises of plot No. 48 Phase-I Ecotech-III, Habibpur, Greater NOIDA. Another team of officers visited the premises of the factory of M/s. Poorvai Pan Masala Pvt. Ltd. Plot No. 59 Ecotech-III, Greater NOIDA. The applicant who was present there introduced himself as former Director of M/s. Poorvai Pan Masala Pvt. Ltd. Plot No. 59 Ecotech-III, Greater NOIDA. After conducting the proceedings, the officers offered for personal search which was declined by Manoj Arora. It was also communicated that another team of the officers from Central Excise Commissionerate NOIDA was conducting search operation at the premises located at plot No. 48 Phase-I Habibpur Ecotech-III, Greater NOIDA for probable evasion of excise duty. Thereafter the officers of Anti Evasion, Central Excise NOIDA-II in association with Manoj Kumar Arora made search of the said company and two numbers non-automatic Pan Masala Packing Machines were found in sealed condition. In addition to this one pulverisor machine for grinding two cutter machines, two oven, one domino machine for printing of tin, one number 50KVA DG set. During checking of the unit, an amount of Rs. 8,87,000.00 (Rupees eight lacs eighty seven thousand ) in Indian Currency in denomination of Rs. 2000.00, Rs. 5000.00 and Rs. 100.00were found in the bag kept in the room of the Director. From the record, it evinced that the said amount of currency could be the sale proceeds of the excisable goods manufactured and cleared by the Unit therefore, the officers seized the said currency amounting to Rs. 8.87 lacs under the provisions of Sec. 121 of Customs Act, 1962. Various records relating to procurement of raw materials for the manufacture and preparation of pan masala were available in the Unit. During the course of search a register was found in respect of the attendance of the employees which included sweeper, guard, gardner and workers. After collecting the various materials, statement of Manoj Kumar Arora and his wife Smt. Sapna Arora incharge of M/s. Poorvai Pan Masala Pvt. Ltd., Plot No. 59 Ecotech-III, Greater NOIDA were recorded on 15-3-2017. The statement of Smt. Sapna Aroa was recorded on 16-3-2017 before the Superintendent, Central Excise, NOIDA-II under Sec. 14 of Central Excise Act, 1944. Statement of a number of employees of the applicant were recorded. On the basis of clinching material, it emerged out that the said company was manufacturing pan masala in clandestine manner and the applicant and his wife had derived benefit out of their joint venture for which they are liable to pay excise duty. The applicant in association of his wife has avoided to pay excise duty as prescribed under the Excise Law. The applicant is a mastermind and has made best attempt to secure financial benefit without paying excise duty while he was preparing pan Masala pouch as well as Jarda pouch bearing the Brand "Poorvai" which is corroborated from the computer records, hence the applicant is liable to be prosecuted for commission of offence under Sec. 9A and Sec. 9AA of Central Excise Act, 1944.