MADHEKAR OIL MILLS Vs. SUPERINTENDENT OF CENTRAL EXCISE

JUDGEMENT

(1.) This appeal arises out of the judgment and decree dated 18th March, 1981 passed by the Civil Judge, Senior Division, Solapur in Special Civil Suit No. 161 of 1976.

(2.) A few facts are as follows:

(3.) The plaintiff is a registered partnership firm manufacturing edible oils having Central Excise Licence granted by the Central Excise Department. The said Department carried out investigation of M/s. Vora Bhaichand Hemchand & Company, a firm of brokers and commission agents from Bombay. Certain suppressed books of accounts came to be seized. The said seizure disclosed that the plaintiff had sold 70 tonnes and 974 lbs of edible oil during the period from 11th November 1959 to 17th February, 1960 without making payment of central excise. A scrutiny of certain entries of the said suppressed accounts indicated that the said firm had received from the plaintiff 70 tonnes and 974 lbs. of oil during the period from 11th November 1959 to 17th February 1960. Further investigations were carried out in view of those facts and the private accounts of the plaintiff firm and other documents were also seized and scrutinised. They also disclosed that consignments pertaining to 70 tonnes and 974 lbs were received by the said firm, though the regular accounts did not reflect the said position. Therefore, the Central Excise Department issued a show cause notice to the plaintiff dated 31st January, 1963 and called upon the plaintiff to show cause why the duty should not be recovered and penalty should not be imposed on it under Rule 9(2) of the Central Excise Rules, 1944. A charge-sheet was also served along with the notice. The plaintiff sent a reply and inter alia contended that he should be given an opportunity to cross-examine a witness from M/s. Vora Bhaichand Hemchand. The Collector of Central Excise, Pune, adjudicated the matter. The said Collector replied not only upon the suppressed account books but also the letters which were written by the plaintiffs to the said M/s. Vora Bhaichand Hemchand and Company. Those letters were dated 12th February, 1960, 24th March 1960, 3rd April 1960 and 1st May, 1960. They showed that certain sales have been effected by the plaintiffs in favour of M/s. Vora Bhaichand Hemchand. They also mentioned about the truck number, barrels, transport charges and the amount given to the truck driver etc. when the edible oil was transported. On the basis of the material, the adjudication was made and it was held that the plaintiff had evaded payment of excise duty to the tune of Rs. 7,888.70. It was held that the plaintiff was liable to pay the same along with penalty of Rs. 2.000/-. The said order came to be passed on 6th October 1964.